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2025-12-17 17:59:25
[German Business Confidence Unexpectedly Falls Again; Fiscal Stimulus Fails to Resolve Stagnation] ⑴ Germany's December Ifo Business Climate Index unexpectedly fell to 87.6, below the expected 88.2 and the previous reading of 88.0, indicating that the growth difficulties of Europe's largest economy continue. ⑵ The head of the Ifo survey stated that the German economy "received no gifts" this year, and businesses have become more pessimistic about the outlook for the first half of 2026, although their assessment of the current situation remains unchanged. ⑶ Economists point out that this data decline echoes the decline in the composite PMI, indicating that the long-awaited economic recovery has not yet materialized, and the fiscal stimulus plan previously announced by the government has not yet had a substantial impact. ⑷ Analysts believe that because some of the stimulus funds need to be used to cover the fiscal costs of an aging population, and the specific plans for infrastructure investment will take time to be implemented, the boosting effect of fiscal stimulus on the economy may be less than expected. ⑸ Business confidence has also been dragged down by the failure to implement previously promised broad economic policy reforms, and businesses are waiting for more specific and effective policy measures to revitalize economic momentum.
