The GKI economic sentiment index, a composite indicator, rose to minus 21.3 in December from minus 22.5 in November, which had marked the lowest reading in 23 months. December’s result was driven by improving business and consumer sentiment.
Business confidence increased to minus 10.2 in December from minus 11.6 in November. The print mainly reflected an increase in sentiment in the industrial sector.
Meanwhile, consumer sentiment rose to minus 53.0 in December from minus 53.4 in November due to households’ improved assessments regarding their own savings capacity and their future possibility of purchasing big-ticket items.
FocusEconomics panelists forecast fixed investment to expand 7.2% in 2023, which is unchanged from last month’s projection. For 2024, the panel sees fixed investment growing 5.8%. Panelists project private consumption to increase 4.8% in 2023, which is unchanged from last month’s projection. For 2024, panelists see private consumption expanding 3.7%.