Expectations Cautiously Optimistic

The ZEW Indicator of Economic Sentiment for Germany increased in the current February 2022 survey, climbing 2.6 points to a new reading of 54.3 points. The assessment of the economic situation in Germany also improved in the current survey. The corresponding indicator rose 2.1 points to a level of minus 8.1 points.

“The economic outlook for Germany continues to improve in February despite growing economic and political uncertainties. Financial market experts expect an easing of pandemic-related restrictions and an economic recovery in the first half of 2022. They still expect inflation to decline, albeit at a slower pace and from a higher level than in previous months. Consequently, more than 50 per cent of the experts now predict that short-term interest rates in the euro area will rise in the next six months,” comments ZEW President Professor Achim Wambach on current expectations.

The financial market experts’ sentiment concerning the economic development of the eurozone decreased by 0.8 points in February and currently stands at 48.6 points. The situation indicator climbed to a new level of 0.6 points, corresponding to an increase of 6.8 points compared with the January result.

Inflation expectations for the eurozone increased by 3.6 points in the current survey. The indicator currently stands at minus 35.1 points. 53.2 per cent of the experts expect the inflation rate to decline in the next six months.

More information and studies on the ZEW Indicator of Economic Sentiment and the release dates 2022 (as PDF file, 28 KB) and the historical time series (as Excel file, 81 KB)

More about Achim Wambach on Twitter: @AchimWambach