Economic prospects increasingly cloudy according to ZEW

According to the Centre for European Economic Research (ZEW), the economic prospects for Germany once more became more pessimistic in December and currently amount to 37.2 points after 32.5 points in the previous month. Thus, these are still significantly below a historic mean value of 31.4 points. Financial experts have identified clear risks with regard to the economic growth of major industrial countries in particular to that of the United States which bleaken the export prospects for the German economy.

Another disturbing factor for the export industry is the strength of the Euro against the US dollar. With regard to consumption experts think that it is going to remain mostly unchanged over the next six months. However, they do not predict any increase in consumption.

The evaluation of the current economic situation in Germany became more pessimistic as well in December, and the corresponding index fell by 6.5 points to 63.5 points.

The economic prospects for the Eurozone were also less bright in December. The Euro indicator loses 5.7 points as compared to the previous month and currently stands at minus 35.7 points. The index for the current economic situation in the Eurozone fell by 0.6 points in December and now stands at 59.6 points.

284 analysts and institutional investors took part in this study conducted by the Centre for European Economic Research. GERMAN