The German economic sentiment continues to rise significantly in January. The ZEW Indicator of Economic Sentiment rose 16 points to 26.7. This is the indicator’s highest value since July 2015. The assessment of the economic situation in Germany has also rebounded significantly in the current survey, with the corresponding indicator rising to a level of -9.5 points, 10.4 points higher than in December.
ZEW President Professor Achim Wambach stated that the continued solid rise of the ZEW Indicator of Economic Sentiment is mainly because of the recent settlement of the trade dispute between the U.S. and China.
“This gives rise to the hope that the trade dispute’s negative effects on the German economy will be less pronounced than previously thought. In addition, the German economy developed slightly better than expected in the previous year. Although the outlook has improved, growth is still expected to remain below average”, added Achim Wambach.
Meanwhile, euro area’s financial market experts’ sentiment about the economic development has also rebounded significantly again, bringing the indicator to a current level of 25.6 points for January, 14.4 points higher than in December 2019. The current economic situation indicator rose 4.8 points, rising to a current reading of -9.9 points.
