According to the ZEW Institute, confidence in the German economy fell by 25.8 points to minus 53.8 points in July 2022. It achieved a worse result only in 2008.
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The assessment of the economic situation in Germany also fell sharply and currently stands at minus 45.8 points, which is 18.2 points less than in the previous month.
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The assessment of the situation and expectations are even slightly below the values that appeared in March 2020 at the beginning of the coronavirus crisis. Our neighboring country is now mainly worried about the interruption of Russian gas supplies or the pandemic situation in China.
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“The current major concerns about energy supplies in Germany, the announced increase in ECB interest rates and other restrictions related to the coronavirus in China are leading to a significant deterioration in the economic outlook,” ZEW President and Professor Achim Wambach comments on the current expectations.
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According to him, experts assess the current economic situation significantly worse than in the previous month and further reduce their already unfavorable forecast for the next six months. “Expectations of energy-intensive and export-oriented sectors of the economy are falling especially significantly, but private consumption is also rated as significantly weaker,” says Wambach.
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Expectations of financial market experts regarding economic development in the eurozone decreased by 23.1 points in July. Now they reach minus 51.1 points. The situation indicator decreased by 18 points to a new value of minus 44.4 points.
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Inflation expectations for the eurozone increased by 6.8 points in the current survey. With a rate of minus 25.6 points, they are still moving in negative values.
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Germany is the largest economy in Europe and the largest trading partner of the Czech Republic.
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