According to IFO economist Klaus Abberger the German economy is in the process of stabilisation but has not yet reached the turning point towards recovery. Abberger points out the IFO rise is being driven by better business expectations, but that the current situation remains bad.
The economist sees the main issue for German firms being foreign demand, more so than the oil price or the level of the euro.
Abberger sees ECB rate of 1% as appropriate.