The ZEW Center for European Economic Research released its economic sentiment index for Germany and the Eurozone on Tuesday. Germany's ZEW economic sentiment index climbed to 16.1 in December from 10.4 in November, exceeding expectations for a rise to 15.0.

The assessment of the current situation in Germany rose by 0.6 points to 55.0 points.

"While the large influx of refugees is above all a major challenge facing policy-makers and civil society in Germany, the economic slowdown in emerging markets is exerting pressure on the German export industry. Overall, however, confidence is growing that the German economy is sufficiently robust to meet these challenges in the coming year," the ZEW President Clemens Fuest.

Eurozone's ZEW economic sentiment index increased to 33.9 in December from 28.3 in November, missing expectations for a rise to 34.4.

The assessment of the current situation in the Eurozone rose by 0.4 points to -9.6 points.