Central Banks

German Business Outlook Slumps Amid Economic Uncertainty

  • Ifo expectations gauge sinks to 84.4; economists saw 87.5
  • Europe’s top economy likely shrank for second straight year
WATCH: Germany’s economic weakness is “becoming chronic,” according to Ifo President Clemens Fuest.Source: Bloomberg
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German business expectations sank in December, highlighting the challenges for Europe’s top economy with snap elections likely to bring a change of government.

An expectations gauge by the Ifo institute slumped to 84.4 from 87, the Ifo institute said Tuesday. Analysts polled by Bloomberg had predicted a slight uptick and none saw a retreat of that scale. A measure of current conditions rose, bringing the overall index to 84.7 from 85.6 a month ago.