German investor confidence unexpectedly rose for the first time in five months in December as a fall in oil prices helped offset concern about the strong euro's impact on exports, the ZEW institute said today.
The institute said its expectations indicator, based on a survey of 300 analysts and institutional investors, rose to 14.4 from a near two-year low of 13.9 in November.
Mr Wolfgang Franz, president of Mannheim-based ZEW, said sharp fluctuations in both the euro exchange rate and oil prices were still creating uncertainty but there was no reason to revise expectations that a mild recovery in Europe's biggest economy would continue into next year.
Bundesbank president Mr Axel Weber said today German economic growth could accelerate in coming months as exports continue to grow strongly and help to offset persistently weak domestic demand.
Speaking at a news conference in Frankfurt, Mr Weber said he expected German gross domestic product (GDP) to expand as much as 1.5 per cent next year, adjusted for working days, up from 2004 growth of about 1.2 per cent.