ZEW Economic Sentiment Index for Germany experienced a significant drop in April, falling from 13 to 4.1, well below the anticipated 15.1. This suggests that a considerable improvement in the economic situation is unlikely over the next six months. Although the Current Situation Index rose from -46.5 to -32.5, surpassing the forecast of -40.0, the overall economic situation remains relatively negative.
Similarly, the Eurozone’s ZEW Economic Sentiment Index dipped from 10 to 6.4, underperforming the expected 11.2. However, the Current Situation Index increased by 14.4 points to -30.2.
ZEW President Professor Achim Wambach stated that several factors negatively affect economic expectations, including experts’ anticipation of banks being more cautious with loans and the ongoing impact of high inflation rates and restrictive international monetary policies. Nevertheless, Wambach highlighted that the risk of an acute international financial market crisis appears to have been mitigated.
Full Germany ZEW release here.
