Investor confidence in Germany is at its highest level in 2 years

Investor confidence in Germany is at its highest level in 2 years

Investor confidence in Germany rose for the 10th month, giving rise to optimism that the economy, which had almost stagnated for more than a year, had begun to grow.

Investor confidence in Germany reached the highest level since February 2022.

The ZEW Expectations index rose from 42.9 to 47.1 in May, beating Bloomberg forecasts. The current conditions index also increased from minus 79.2 to 72.3.

ZEW President Achim Wambach said, “The economy grew more than expected in the first quarter of the year, causing current conditions and economic expectations to improve. Signals that the economy is recovering are increasing. There is especially a sharp increase in domestic consumption expectations.” he said.

In Germany, surveys show improvement, especially in the service sector. The slowdown in inflation and the increase in incomes are expected to be the drivers of this year’s recovery.

However, industrial production in the country still remains fragile. In March, industrial production fell for the first time in a year. The expected interest rate cuts by the European Central Bank are also expected to cause some relief in the economy.