FXstreet.com (Barcelona) - Economic sentiment has brightened considerably in Germany in January, as the second stimulus package seems to have contributed to restore confidence into the health of German economy, the assessment of the current economic situation, however, has declined from December.

The ZEW Economic Expectations Index has increased to -31 in January from -45.2 in December. January's improvement is the third in a row, economic expectations have picked up from -63.0 in October last year. Nevertheless, the expectation index remains well below the 26.8 points historical average level.

The Current Situation Index has worsened further in January, reaching a level of -77.1 in January from -64.5 in December.

Economic expectations for the Euro Zone have increased by 15.3 points to -30.8 points, while the current situation index for the Euro Area dropped by 13.5 points to -84.7 points.