The Middle East conflict, high prices, unclear monetary policy – the lack of an upturn in the German economy is no coincidence. A forecast by financial experts.
The economic expectations of German financial experts deteriorated significantly more than expected in August. The sentiment barometer of the ZEW research institute fell by 22.6 points to 19.2 points compared to the previous month, according to the Center for European Economic Research (ZEW) in Mannheim. According to economists, hopes for an upturn are fading.
“The economic outlook for Germany is collapsing,” said ZEW President Achim Wambach, commenting on the data. “This suggests that economic expectations continue to be influenced by high levels of uncertainty, driven by unclear monetary policy, disappointing business figures from the US economy and growing concerns about an escalation of the Middle East conflict.”
It was the second decline in economic expectations in a row. The assessment of the current economic situation also worsened in August. Recently, a number of leading indicators for the German economy had deteriorated. In addition, there was turbulence on the financial markets last week. Concerns about the US economy increased.
Source: Stern
