The ZEW Indicator of Economic Sentiment for Germany dropped by 5.2 points from the previous month's 13-month high to -2.1 in May 2019, missing market expectations of 5.0. Financial market experts continue to expect restrained economic growth in Germany for the next six months, while the most recent escalation in the trade dispute between the US and China again increases the uncertainty regarding German exports – a key factor for the growth of the gross domestic product. Meanwhile, the assessment of the economic situation in Germany has improved by 2.7 points, with the corresponding indicator climbing to a current reading of 8.2. Zew Economic Sentiment Index in Germany averaged 22.09 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 1.00 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.