German economic barometer by ZEW reaches peak of two years.
Stock market experts are growing more optimistic about the German economy due to the recent improvement in the global economy, marking the highest level of optimism in more than two years. [according to a survey conducted by the Mannheim Center for European Economic Research (ZEW), with 156 analysts and investors]. The optimism index reached 47.1 points in May, the tenth consecutive increase, up from 42.9 points in April.
This latest surge in optimism surpasses expectations set by economic analysts at Reuters, who predicted a gain of just 46.0 points. However, the current economic situation in Germany remains negative, with the recent improvement resulting in a 6.9-point rise but still sitting at -72.3 points.
Achim Wambach, director of the ZEW, commented on the increasingly positive outlook, citing numerous signs of economic recovery. He mentioned the improved economic situation in the eurozone and the Chinese export market as potential factors contributing to the improved optimism.
"Confidence is on the rise," said Wambach. Specifically, he noted the significant increase in expectations for domestic consumption, followed by the construction and machinery sectors. Despite the recent upswing, Wambach cautioned that a "sustained upturn" has not yet materialized. In fact, the German economy narrowly avoided going into recession at the start of 2023, growing by 0.2%. The Federal Ministry of Economics expects the recovery to gradually strengthen but warned that it is not yet fully established.
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Source: www.ntv.de
