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Business confidence amongst German companies is up according to the IFO Institute, as the International Monetary fund predicts the country's economy will overtake Japan by the end of the year.

This is despite Monday's report from the Bundesbank – Germany’s central bank - suggesting the economy was still contracting in the last quarter.

Roger Hearing finds out what's behind the optimism and how the economy can be turned around.

(Picture: The inside parts and cables of a heat pump system are assembled at the Bosch company's production line in in Eibelshausen, near Wetzlar, Germany, 25 October 2023. Credit: RONALD WITTEK/EPA-EFE/REX/Shutterstock)