“With snap elections ahead in Germany and the resulting expectations of an economic policy encouraging private investment as well as the prospect of further interest rate cuts, the economic outlook is improving. Our daily analyses also show that after the meeting of the European Central Bank’s governing council on 12 December, experts still expect further interest rate cuts for the coming year. The fact that the majority of the survey respondents expect a stable or falling inflation rate in the eurozone supports this assessment. The experts appear to assess the recent rise in inflation as a temporary phenomenon,” said ZEW president Achim Wambach on the survey results.
The ZEW Indicator of Economic Sentiment for Germany rose to 15.7 points in December 2024, up 8.3 points from the previous month, reflecting improved economic outlook due to expectations of pro-investment policies and potential interest rate cuts.
However, assessments of the current economic situation in Germany and the eurozone remain negative.
The financial market experts’ sentiment concerning the economic development in the eurozone is currently more positive at 17.0 points, i.e. 4.5 points higher than in November. Nevertheless, the assessment of the current economic situation in the eurozone is clearly deteriorating, with the situation indicator falling by 11.2 points to a new reading of minus 55.0 points.
Fibre2Fashion News Desk (RR)