Economic sentiment in Germany deteriorates after brief recovery: ZEW

2021-12-07 17:05:59 GMT2021-12-08 01:05:59(Beijing Time) Xinhua English

BERLIN, Dec. 7 (Xinhua) -- Economic sentiment in Germany in December worsened after a brief recovery as the ZEW indicator dropped to 29.9 points, according to the monthly expert survey published by the Leibniz Center for European Economic Research (ZEW) on Tuesday.

"The German economy is suffering noticeably from the latest developments in the COVID-19 pandemic," ZEW President Achim Wambach said, adding that "persisting supply bottlenecks are weighing on production and retail trade."

The current economic situation in Germany continued to deteriorate as the corresponding indicator plummeted 19.9 points to minus 7.4 points, according to the ZEW. This is the first time since June that the situation assessment indicator has turned negative.

The outlook for economic development in Germany in the next six months has also worsened considerably, according to ZWE.

"The decline in economic expectations shows that hopes for much stronger growth in the next six months are fading," Wambach said. In particular, earnings expectations of export-oriented and consumer-related industries in Germany were "assessed more negatively."

The expectations of the 174 financial market experts surveyed regarding economic developments in the eurozone ticked up slightly in December and reached 26.8 points. The situation indicator, on the other hand, fell by 13.9 points to minus 2.3 points.

Inflation expectations for the eurozone "continued to decline very sharply," the ZEW noted. The inflation indicator fell to minus 33.3 points, 19.0 points below the previous month's level. More than half of the experts expect the inflation rate to fall over the next six months. Enditem