2023-04-22 16:00:14
German investor confidence worsened in April for the second month in a row, after a five-month rise, suggesting no substantial improvements are expected in the economy over the next six months, according to an indicator from the Center for European Economic Research at Leibniz (ZEW, for its acronym in German).
Specifically, the ZEW index stood at 4.1 points in April, compared to 13 in March and 28.1 in February, thus registering the lowest level so far this year, but still in positive territory.
However, despite the deterioration of expectations in April, the assessment of the current situation by German investors has improved notably, going to -32.5 points, compared to -46.5 in March, by dodging the risk of a global financial crisis.
“Financial market experts are still not sure,” said Achim Wambach, president of the ZEW, for whom economic expectations are negatively affected by several factors, including the greater caution expected in lending by banks, the still high inflation rates and internationally restrictive monetary policy.
“On the positive side, the danger of an acute crisis in the international financial market seems to have been averted,” the expert stressed, noting that earnings expectations for banks and insurers have improved compared to the previous month and are clearly in positive territory.
As to to the euro zoneGerman investors have lowered their expectations, with the corresponding index reading 6.4 points, against the full 10 last month, while the assessment of the current situation has improved 14.4 points, to -30, 2 integers.
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