BERLIN, (Reuters) – German investor sentiment rose in February due to expectations that COVID-19 restriction will be removed, allowing Europe’s largest economy growth to continue, according to a poll released Tuesday.

According to the ZEW economic research center, its economic sentiment index rose from 51.7 in January to 54.3. According to Reuters, the number of people feeling optimistic about their economy rose to 55.0.

“Germany’s economic outlook continues to improve”

“February despite growing economic-political uncertainties,” Achim Wambach, President of ZEW said in a statement.

According to financial market experts, the pandemic restrictions will be eased and there will be an increase in economic growth during 2022’s first half. He said that they still anticipate inflation falling, but at a slower rate and at a lower level than the previous months. According to more experts, over 50% predict that the short-term euro area interest rates will increase in.

The next six months”

The index for current conditions went up to -8.1 points, from -10.2. According to consensus, the forecast for current conditions was 6.0.

Thomas Gitzel from VP Bank wrote in a note, that a Russian military intrusion into Ukraine could cause Germany to lose its recovery. This was especially true if Western countries respond by imposing sanctions on Russia and halting gas delivery to Europe.

He wrote that the Ukraine conflict might hinder economic recovery. The EU and the United States will work together to protect the energy sector in the case of an offensive by Russia. There are still risks that could reduce economic optimism.