Carsten Brezski, a senior economist at ING based in Brussels, said that Germany was having a conciliatory year-end after a rather disappointing year in which the "former growth miracle quickly lost its glamor."
"The Ifo reading (released Thursday) gives a conciliatory end to an exciting but also disappointing year of the German economy. The economy has once again defied premature swan songs," he wrote in a note following the Ifo data.
German's shouldn't be too quick to open the champagne, however, as Russia's economic crisis and complacency were probably the country's two biggest downside risks to a rosier German near-term outlook, Brezski warned.
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"As regards Russia, German exports to Russia have already suffered under the sanctions and the Russian slowdown, currently standing 22 percent below last year's level," he said, "and there is clearly room for improvement" in terms of private consumption and investment in the economy.
"It's now time to take a deep breath and enjoy Christmas, even if there is no reason for excessive backslapping," he said.