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German investors' confidence improved much more than expected in December, according to a survey released on Tuesday, as unexpected export growth in October boosted hopes of a turnaround in Europe's largest economy.
German investor confidence rose to 10.7 in December and negative 2.1 in November, according to a monthly survey by German think tank ZEW, which is even higher than the highest expectation of analysts interviewed by Reuters. The average median of analysts is 0.0.
Germany's economy is going through a period of weakness in recent years. Its export-oriented manufacturing industry is struggling to cope with trade frictions, the troubled automobile industry, and the uncertainty brought about by Britain's planned exit from Europe.
But data released on Monday showed an unexpected increase in Germany's exports in October, boosted by increased demand outside Europe, which helped boost investor confidence.
According to ZEW president Achim Wambach, investor confidence has increased "because of the expectation that German exports and private consumption will develop better than previously expected".
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