The ZEW Indicator of Economic Sentiment for Germany plummeted 19 points to -21.1 in June 2019, well below market expectations of -5.9, amid weak economic data for Germany at the beginning of the second quarter and uncertainty regarding global economy. The intensification of the conflict between the US and China, the increased risk of a military conflict in the Middle East and the higher probability of a no-deal Brexit are all weighing on the global economic outlook. In addition, German industry has reported worse than expected figures for production, exports and retail sales for April. Meanwhile, the assessment of the economic situation in Germany slightly worsened by 0.4 points to a current reading of 7.8. Zew Economic Sentiment Index in Germany averaged 21.96 from 1991 until 2019, reaching an all time high of 89.60 in January of 2000 and a record low of -63.90 in July of 2008.
Zew Economic Sentiment Index in Germany is expected to be -4.00 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 2.00 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.