Germany’s closely followed Ifo index of business sentiment fell to its lowest level at the end of 2025 since the spring. “The year is ending without any sense of optimism,” the Ifo institute noted succinctly.
But to some economists, this feeling of gloom in the Eurozone’s largest economy is misplaced — at least, in part. Not only did the single currency zone prove more economically resilient than expected in 2025, but additional growth drivers are also poised to kick in over the coming 12 months, which have the potential to lift the outlook.
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