The ZEW Indicator of Economic Sentiment for Germany climbed 16.0 points from the previous month to 26.7 in January 2020, the highest since July 2015 and well above market expectations of 15.0. Investors believe the trade dispute's negative effects on the German economy will be less pronounced than previously thought following the recent signing of the US-China Phase One agreement. In addition, the German economy developed slightly better than expected in the previous year. Meanwhile, the assessment of the economic situation also improved considerably, with the corresponding indicator jumping 10.4 points to -9.5. Zew Economic Sentiment Index in Germany averaged 21.27 from 1991 until 2020, reaching an all time high of 89.60 in January of 2000 and a record low of -63.90 in July of 2008. source: Centre for European Economic Research (ZEW)
Zew Economic Sentiment Index in Germany is expected to be -8.00 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Zew Economic Sentiment Index in Germany to stand at -4.00 in 12 months time. In the long-term, the Germany Zew Economic Sentiment Index is projected to trend around -3.00 in 2020, according to our econometric models.