Investor Confidence in Germany Increases: Economic Expectations Improve

Significant Increase in Investor Confidence in Germany

Investor confidence in Germany saw a marked improvement in December. The ZEW investor expectations index rose from 38.5 in November to 45.8, exceeding the market expectation of 38.4.

Decline in Current Conditions Index

On the other hand, the ZEW current conditions index fell to minus 81, remaining below the expectation of minus 80. This index had been at minus 78.7 in November.

Economic Expectations and Warnings

ZEW President Achim Wambach stated that investor expectations have become more positive following three years of economic slowdown. An expansionary fiscal policy is expected to provide a new momentum for the German economy. However, he warned that lasting trade conflicts, geopolitical tensions, and weak investments are likely to remain significant on the reform agenda until 2026, noting that "the improvement remains fragile."

Recovery of Investor Confidence in the Eurozone

A similar improvement is also observed in the Eurozone. The investor confidence expectations index rose from 25 to 33.7 in December, indicating a restoration of confidence after the region's prolonged recession.