International Netherlands: Despite weak economic data, German companies still hope for fiscal stimulus to boost recovery.

According to Jin10 data on August 25, analyst Carsten Brzeski from the Dutch International Group stated in a report that German companies seem to have high hopes for the upcoming government spending. The closely watched German IFO index shows that German business confidence continues to rise this month, dispelling the pessimistic data from last week that showed a deeper contraction in Germany’s second-quarter economy than initially estimated. However, Brzeski pointed out that, given the U.S. tariff policies and the generally bleak outlook for German exporters, the source of this optimism is not clear. Businesses’ hopes may primarily rest on the large-scale defense and infrastructure fiscal investments promised by German Chancellor Merz. “The IFO index shows that German companies hold significant optimism about the fiscal stimulus for economic recovery,” he stated.