German investor confidence rose more than expected in April, a key survey showed Tuesday, on growing optimism about the economic outlook at home and abroad.

The ZEW institute's economic expectations index rose for the ninth consecutive time, climbing by 11.2 points month-on-month to reach 42.9 points.

Analysts surveyed by FactSet had predicted a smaller jump to 35 points.

"A recovering global economy is boosting expectations for Germany, with half of the respondents anticipating the country's economy to pick up over the next six months," said ZEW president Achim Wambach.

"Further contributing to the heightened optimism are the much improved assessments of the situation and economic expectations in Germany's export destinations," he added.

Europe's largest economy shrank by 0.3 percent last year, battered by high interest rates, elevated inflation and an export slowdown.

With eurozone inflation steadily slowing in recent months, the European Central Bank last week reiterated that it was eyeing a first rate cut in June.

While the German economy likely had a weak first quarter, a modest recovery is expected to get under way this year as demand picks up on the back of easing inflation and the expected reduction in borrowing costs.

The turnaround is expected to take longer than initially thought however, prompting the government to recently slash its forecast for 2024 to just 0.2 percent growth.