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Economic climate in euro area for Q1 improves significantly

Staff Writer |
Economic climate in the euro area for the first quarter of the year improved markedly, German economic research institute Ifo reported.

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The Ifo index for the economic climate in the euro area rose to 17.2 balance points in the first quarter from 8.2 balance points in the previous quarter, according to the advance results of Ifo World Economic Survey for the first quarter of 2017.

The surveyed experts also assessed their current economic situation more favorably. The economic outlook brightened almost everywhere except Greece, Italy and Portugal, the Munich-based think tank said.

"The economic recovery is gathering impetus," Ifo President Clemens Fuest noted in the report.

Ifo experts expected an inflation rate of 1.3 percent for 2017 in the euro area after an inflation rate of just 0.2 percent in 2016.

Meanwhile, a clear majority of the surveyed experts expected long-term interest rates to rise over the next six months.

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