BERLIN: German business morale brightened more than expected in April, hitting its highest in nearly six years, a survey showed on Monday, suggesting Europe’s largest economy is set to carry its robust upswing into the second quarter of this year.
The Munich-based Ifo Institute for Economic Research said its business climate index, based on a monthly survey of some 7,000 firms, rose to 112.9 from an upwardly revised 112.4 in March.
The reading, the highest since July 2011, came in stronger than a Reuters consensus forecast for a value of 112.5.
“The German economy is growing strongly,” Ifo chief Clemens Fuest said in a statement.
Ifo economist Klaus Wohlrabe told Reuters that the German economy was not being influenced by political uncertainties such as the threat of rising protectionism, major elections in Europe and the course of Brexit negotiations.
The survey was conducted in the first half of April, meaning it did not include any reaction to the first round of the French presidential election on Sunday in which centrist Emmanuel Macron came in first, qualifying for a May 7 runoff alongside far-right leader Marine Le Pen.
Managers’ assessments of the current business situation improved significantly while their outlook for the coming six months was a bit less optimistic, it showed.
Morale improved in construction, retailing and wholesaling whereas managers in manufacturing were somewhat less upbeat.
In construction, assessments of the current business situation rose to a new record high while expectations remained broadly positive and the order level was excellent, Ifo said.
“The Ifo index continued its recent surge in April, increasing for the third consecutive month, suggesting that Germany’s golden cycle has entered yet another round,” ING economist Carsten Brzeski said.
“The only weak spot of the German economy remains a rather sluggish investment,” he noted, adding the government should focus on the import side of the trade surplus and further support domestic demand, preferably in the form of stimulating higher private and further increasing public investments.
Germany’s gross domestic product (GDP) grew by 1.9 percent last year, the strongest rate in five years, helped by a vibrant domestic economy, which more than offset a drag from net trade.
Strong industrial output and export figures for January and February have suggested that the economy shifted into an even higher gear in the first quarter of 2017, helped by rising global demand for cars and machines.
Economists expect Germany’s quarterly growth rate to clearly pick up in the January-March period after 0.4 percent in the final three months of 2016.
Germany’s VDMA engineering association said earlier on Monday it could lift its growth forecast for this year if early signals of positive business sentiment persist and prove justified.
VDMA head Carl-Martin Welcker said higher demand from emerging markets such as Russia and India could lift German engineering production this year after a year of stagnation while China, the US and Britain were sources of uncertainty.
German business morale brightens in April
German business morale brightens in April
PIF-backed AviLease achieves revenue of $664m and 19% growth in 2025
RIYADH: Saudi Arabia’s Public Investment Fund-backed AviLease achieved exceptional performance and sustainable business growth during 2025, supported by the strategic expansion of its global platform.
According to its financial results for 2025, AviLease recorded total revenues of $664 million, an annual increase of 19 percent, driven by disciplined growth in its asset portfolio and strong performance in aircraft remarketing amid sustained global demand for modern, fuel-efficient aircraft, the Saudi Press Agency reported.
Profit before tax doubled compared to the previous year, reaching $122 million. The year witnessed an expansion in AviLease’s portfolio, reaching 202 owned and managed aircraft, leased to over 50 airline companies in more than 30 countries.
The total value of the company’s assets stabilized at $9.3 billion. AviLease maintained a 100 percent fleet utilization rate, reflecting the resilience of its business model, the efficiency of its asset management, and the strength of its strategic relationships with airlines around the world.
AviLease concluded purchase agreements for aircraft from Airbus, including the A320neo family and A350F, and Boeing 737 aircraft, aiming to enhance its future asset portfolio with modern, fuel-efficient aircraft. This step will contribute to supporting future growth and meeting increasing customer demand for the latest aircraft, aligning with the Kingdom’s ambitions to become a leading global aviation hub.
AviLease strengthened its prestigious credit standing by obtaining a strong Baa2 credit ratings from Moody’s and BBB from Fitch, reflecting its financial solidity, managerial discipline, and efficiency in managing leverage. The company also successfully issued senior unsecured bonds worth $850 million last November under Regulation 144A/RegS. This issuance contributed to diversifying its funding sources and enhancing its financial flexibility.
Commenting on the results, AviLease CEO Edward O’Byrne said: “This exceptional performance reflects the quality of the company’s investment portfolio, the strength of its partnerships with airlines, and its strategic focus on responsibly deploying capital into highly sought-after, efficient, modern aircraft assets.”
He added: “As aviation markets continue to grow, AviLease is strategically positioned to continue its expansion plans and deliver sustainable long-term value for shareholders, contributing to the Kingdom’s ambitions.”
Throughout 2025, AviLease continued to play a pivotal role in the Kingdom’s growing aviation sector and contributed directly to the launch and scaling of the new national carrier, Riyadh Air, by completing a sale and leaseback transaction for a Boeing 787-9 aircraft, which thereby became the first aircraft to join the airline’s fleet.
AviLease also established a strategic partnership with Hassana Investment Co. This partnership aims to provide an opportunity for local and international investors to enter the aircraft financing asset class and benefit from AviLease’s technical expertise and operational capabilities to support partnership growth and enhance performance.
Hassana Investment Co. has agreed to acquire an initial portfolio of 10 modern aircraft from AviLease.
