Economic Situation at Lowest Level Since June 2020

The ZEW Indicator of Economic Sentiment for Germany increased again in the February 2024 survey. The indicator reaches 19.9 points, 4.7 points above the January value. In contrast, the assessment of the economic situation in Germany has decreased significantly. The corresponding indicator lost 4.4 points and now stands at minus 81.7 points.

“The German economy is in a bad place. The assessment of the current economic situation by the respondents has deteriorated to the lowest level since June 2020. In contrast, economic expectations for Germany have improved again. Accordingly, more than two-thirds of the respondents expect the ECB to make interest rate cuts over the next six months in light of falling inflation rates. Almost three-quarters of respondents expect imminent interest rate cuts by the American central bank,” comments ZEW President Professor Achim Wambach on the survey results.

The financial market experts’ sentiment concerning the economic development of the eurozone also experienced an increase in the current survey. At 25.0 points, the indicator increased by 2.3 points compared to January. The situation indicator for the eurozone increased, climbing 5.9 points to a new reading of minus 53.4 points.