ZEW Indicator of Economic Sentiment - Expectations Rise

The ZEW Indicator of Economic Sentiment for Germany has climbed by 9.0 points in November 2010. The indicator now stands at 1.8 points after minus 7.2 points in the previous month. This value is below the indicator’s historical average of 26.9 points.

Compared to other industrialised countries the German economy has seen a stronger recovery so far. This month’s rise of economic sentiment possibly results from financial market experts’ growing optimism towards the economic perspectives of other countries. Moreover, the positive development of the German labour market has stimulated domestic demand. This, too, may have boosted the financial market experts’ sentiment.

"In fact, the current situation of the German economy is exceptionally good. Nevertheless, there is no need to be overoptimistic with respect to the development of Germany’s economic activity next year. Indeed, the forecast for growth in real GDP in 2011 is 2.2 percent but in fact the dynamics of economic growth will be considerably lower", says ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.

Once again, the assessment of the current economic situation in Germany has improved compared to the previous month. In November the corresponding indicator has risen by 8.9 points to 81.5 points. The economic expectations for the eurozone have increased by 12.0 points in November. The respective indicator now stands at 13.8 points. The indicator for the current economic situation in the eurozone has improved by 0.1 points and now stands at minus 1.0 points.

For further information please contact

Christian David Dick, Phone: +49 (0)621/1235-305, E-mail: dick@zew.de  

Frieder Mokinski, Phone: +49 (0)621/1235-143, Fax: -223, E-mail: mokinski@zew.de