Economic sentiment in Germany continues recovery from COVID-19 crisis: ZEW

Source: Xinhua| 2020-06-16 23:00:24|Editor: huaxia

BERLIN, June 16 (Xinhua) -- The ZEW indicator of economic sentiment for Germany in June increased by 12.4 points to 63.4 points, according to the monthly expert survey published by the Leibniz Centre for European Economic Research (ZEW) on Tuesday.

After a record slump in March to minus 49.5 points due to the coronavirus crisis, the indicator increased for the third month in a row, according to ZEW.

"There is growing confidence that the economy will bottom out by summer 2020," said ZEW President Achim Wambach. This was reflected in the renewed increase of the economic sentiment as well as in the "more optimistic" assessment of the current situation.

The assessment of the current economic situation in Germany improved for the first time since January. The corresponding indicator stood at minus 83.1 points, 10.4 points higher than in the previous month.

While earnings expectations for export-oriented sectors such as automotive and mechanical engineering as well as the financial sector were "strongly negative", the outlook for the information technology, telecommunications and consumer-oriented services sectors was "fairly positive," according to ZWE.

"The financial market experts continue to expect only a slow increase in economic value added in the third and fourth quarters," said Wambach.

For the entire year 2020, the German Council of Economic Experts (GCEE) expects a decline in German gross domestic product (GDP) between 6 and 7 percent, an official forecast is expected to be presented by the end of the month. Enditem