Economic expectations are rising surprisingly

Economic expectations are rising surprisingly

The mood of financial analysts from banks, insurance companies and large industrial companies brightened more than expected in April. According to the Center for European Economic Research (ZEW), the ZEW index of economic expectations rose to 42.9 points from 31.7 points in the previous month. Economists surveyed by Dow Jones Newswires had only expected an increase to 35.0 points. The index for assessing the economic situation showed only a slight increase to minus 79.2 points compared to minus 80.5 points in the previous month, while economists had expected a stronger increase to minus 75.0 points.

ZEW President Achim Wambach explained that a recovering global economy is raising expectations for Germany. Half of those surveyed assume that the German economy will improve in the next six months. Improved assessments of the situation and economic expectations in German export countries also contribute to the increased optimism. This is also reflected in the expected appreciation of the US dollar compared to the euro. Economic expectations for the Eurozone also improved in April, with the corresponding indicator rising by 10.4 points to 43.9 points.

Overall, the positive development of the ZEW index in April reflects the growing confidence of financial analysts, who are predicting a recovery in the global economy and a corresponding improvement in economic activity in Germany and the Eurozone. These positive signals could indicate a sustainable economic recovery, which could also have international effects.