Economic climate in euro area brightens: Ifo

Ifo index for the economic climate in the euro area rose to 112.7 points in the first quarter from 102.3 points in the previous quarter, the Munich-based think tank reported Thursday.

Assessments of both current economic situation and of the six-month economic outlook brightened. Experts expect to see a price rise of 0.7 percent in 2015 and an annual inflation rate of around 1.6 percent over next three to five years, Ifo said in its report.

"There are signs of an economic recovery in the euro area," said Hans-Werner Sinn, president of Ifo institute.

Sinn believed the current economic situation improved or at least remained unchanged since the end of 2014 in all countries of the euro area except Greece and Finland.

However, Ifo said that assessments of the current economic situation remain unfavorable in majority of countries in the euro area.

Ifo is one of Europe's leading research institutes. Its business climate index is considered as the most important barometer for the German economy.