The Ifo Business Climate Index rose to 85.6 points in June 2026, up from 85.0 in May, the Munich-based Ifo Institute reported. This marks the second consecutive improvement and exceeded many economists’ expectations, who had forecast a rise to 85.5 points. Ifo President Clemens Fuest said the German economy is hoping for a relaxation of the global political situation.
The survey was conducted among 9,000 executives. Klaus Wohlrabe, head of the Ifo survey, reported that uncertainty among companies is decreasing and planning security is increasing. The new framework agreement between the US and Iran, which is intended to lead to a permanent peace deal within 60 days, likely contributed to the positive expectations.
Nevertheless, the situation at the Strait of Hormuz, a key chokepoint for international oil and commodity transport, remains tense. Oman and Iran plan to form a working group to reach an agreement on shipping traffic. The Ifo Institute forecasts that gross domestic product will grow by only 0.8 percent by 2026, despite the challenges posed by the Iran war.
Source: Tagesschau
