The ZEW Indicator of Economic Sentiment for Germany rose by 9.8 points from the previous month to -3.6 in March 2019, easily beating market expectations of -11. It was the highest reading since March last year, due to the possible delay in the Brexit process as well as the renewed hope for a deal on the UK’s withdrawal from the EU. Progress made in the negotiations between China and the US to end the ongoing trade war may also have contributed. Meanwhile, the assessment of the current economic situation dropped by 3.9 points to 11.1 in March. Zew Economic Sentiment Index in Germany averaged 22.22 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 -20.00 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 -12.00 in 12 months time. In the long-term, the Germany Zew Economic Sentiment Index is projected to trend around -7.00 in 2020, according to our econometric models.