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Economy And The Numbers

German Economic Sentiment Improves Strongly Despite Recession Worries

By Jyotsna V   ✉   | Published:   | Follow Us On Google News
rttnewslogo20mar2024

Germany's ZEW investor confidence index rose sharply in October as financial market experts expectations improved on hopes of further easing in inflation and stability in interest rates, while the current assessment indicator set a new three-year low signaling that the biggest euro area economy is in recession.

The economic sentiment indicator gained for a third month in a row, up 10.3 points to minus 1.1 in October, survey data from the think tank ZEW showed Tuesday. Economists had forecast a score of minus 9.3. The latest reading was the strongest since April, when it was 4.1.

"It seems that we have passed the lowest point," ZEW President Achim Wambach said.

While there was a noticeable uptick in the economic expectations of financial market experts, their assessment of the current economic situation in Germany was barely changed.

"The heightened economic expectations are accompanied by the anticipation that inflation rates will decrease further and the fact that now more than three-quarters of respondents anticipate stable short-term interest rates in the eurozone," Wambach added.

"Negative factors such as the Israel conflict - cited by some respondents as a reason for revising their growth forecasts downward - had only limited impact on the overall more optimistic outlook."

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