BERLIN, March 16 Reuters Investor sentiment in Germany increased by more than expected in March, the ZEW economic research institute said on Tuesday, buoying the outlook for a broadbased recovery in Europes largest economy.

The ZEW said its survey of investors economic sentiment rose to 76.6 points from 71.2 the previous month. A Reuters poll had forecast a rise to 74.0.

ZEW polled 189 analysts in the period March 815 for its survey. On March 15, Monday, Germany said it had suspended use of AstraZenecas COVID19 vaccine.

Economic optimism continues to rise. Experts expect a broadbased recovery of the German economy, ZEW President Achim Wambach said in a statement.

They anticipate that at least 70 of the German population will be offered a vaccine against Covid19 by autumn. However, a large majority also expects inflation to continue to grow, as well as higher longterm interest rates.

A separate gauge of current conditions rose to 61.0 points from 67.2 the previous month. That compared with a consensus forecast of 62.0 points.

Thomas Gitzel, economist at VP Bank Group, noted that the survey did not reflect the AstraZeneca vaccine suspension.

The already sluggish European vaccination campaign now gets another damper, he said. Europe is facing a third wave of infections rather defencelessly.

There is a growing risk that the agreed relaxation in restrictions will soon have to be withdrawn again. This would further delay the economic recovery.

Earlier this month,…