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German investors confidence falls unexpectedly in April

Xinhua, April 21, 2015 Adjust font size:

The confidence of German investors fell unexpectedly in April after rising for five months in a row, a survey found on Tuesday.

An indicator measuring investors' expectation for German economic performance in the next six months fell slightly in April, said Mannheim-based Center for European Economic Research (ZEW).

Compared to the previous month, the reading declined by 1.5 points to 53.3 points, it said. The survey was based on 238 market analysts. Previously, economists expected the ZEW indicator to increase for the six consecutive month since October last year.

"The current weakness of the world economy is dampening export prospects and reducing the scope for further improvements of the economic situation in Germany," ZEW President Clemens Fuest said in a statement.

Meanwhile, "The German economy is in good shape. A stable labour market and increasing wages are strengthening confidence and boosting consumption," he added.

Investors' assessment of the current situation in Germany improved in April. The corresponding index increased by 15.1 points to 70.2 points.

According to German government's forecast, Europe's biggest economy would grow by 1.5 percent in current year thanks mainly to a robust private consumption.

Economists were more optimistic. Last week, four leading economic institutes in Germany lifted their forecast for 2015 growth to 2.1 percent, citing "unexpected expansive impulses" from a cheaper oil and weaker euro.

Uncertainties, however, remained on the track of Germany's economic revival. Despite a strong private consumption which was supported by stable labour market, increasing wages and falling energy prices, a weak increase in net exports and lack of domestic investment hobbled German economy.

One of the latest concerns was on Greece. Athens and its international creditors were still far from reaching an agreement on Greece's reform and unlocking a financial aid that was desperately needed by the Mediterranean country to avoid debt default, posing uncertainties to the future of the euro zone.

An uncertain prospect of euro zone, analysts said, would dampen German companies' willingness to invest and thus hamper the common currency area's growth engine. Endit