German investor sentiment surges on hopes of economic growth

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German investor sentiment surges on hopes of economic growth

BERLIN, January 18, Reuters -- German investor sentiment surged in January on the expectation that the incidence of COVID 19 cases will fall by early summer, allowing growth in Europe's largest economy to pick up in the coming six months, a survey showed on Tuesday.

The ZEW economic sentiment index rose to 51.7 from 29.9 points in December. A Reuters poll had pointed out a rise to 32.0.

The economic outlook has improved significantly with the start of the new year. Economic growth will pick up in the coming six months, according to ZEW President Achim Wambach.

The fourth quarter of 2021 will be over, and it is likely that the economic weakness will be overcome soon. He said that the incidence of COVID 19 cases will fall significantly by the end of summer.

An index for current conditions fell to 10.2 points from 7.4. The consensus forecast was for a reading of 8.5.