German economic expectations hit in October 6.2

German economic sentiment rose at the beginning of this quarter which points at strong economic activity, notes ZEW in the latest report released on Tuesday.

German economic expectations rose in October from 0.5 to 6.2, which is higher than expected. Experts forecasted growth to 4.5. At that time, the index is still below average long-term meaning at 24.1.

ZEW members say that positive economic data released for the last time do not cover existing political and economic risks and risks for a banking system.

German government released in October its forecast on GDP growth, where the index had been revised up to 1.8% for this year and down to 1.4% for the next year. The forecast for 2017 was revised on the background of rising uncertainty connected with Brexit and due to the high number of working days. GDP growth for 2018 is expected to be at 1.6%.