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German Economy Shows Recovery Amid Tariff Risks

2/23/2026

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Story summary
  • In February 2026, the Ifo Institute for Economic Research index rose to 88.6, the highest since August, signaling recovery.
  • Clemens Fuest of the Ifo Institute for Economic Research noted increased satisfaction among companies.
  • The expectations index rose to 90.5.
  • Analysts highlighted strong order intake in manufacturing and a notable rise in industrial orders.
  • Economists warned of risks, including tariff uncertainties and a stronger euro, tempering the outlook.