Ifo’s Abberger: No turnaround yet in sight, but economic freefall is now over

Ifo economist Klaus Abberger feels there is no economic turnaround yet on the horizon, but the freefall experienced throughout the winter has halted.

The economist told Reuters “There are signs of calming in the economy, but it is still contracting.”

Abberger doesn’t expect a collapse in consumption, but rising unemployment may hurt in medium-term.

Euro appreciation is currently not main problem for companies, lack of demand main problem.

Abberger feels ECB should stay neutral for now, but there is scope for it to later cut rates below 1%.