German business morale brightens further in January - Ifo

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German business morale brightened in January as Europe's largest economy started the new year with easing inflation and an improved outlook, a survey said on Wednesday.

The Ifo institute said its business climate index rose to 90.2, in line with consensus according to a Reuters poll of analysts and up from a reading of 88.6 in December.

"There probably won't be a recession, but GDP could shrink slightly in the first quarter," Ifo's economist Klaus Wohlrabe said. The euro zone largest economy is expected to narrowly avoid recession this year with price-adjusted growth of 0.2%, according to the German government's"The reason for this resilience is not so much the structure of the economy but rather a simple policy recipe that the German government has successfully used over the last 15 years and perfected recently: fiscal stimulus," said Carsten Brzeski, global head of macro at ING.

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