The growth of investor confidence in the German economy in December this year surpassed market forecasts. The corresponding index, calculated by the ZEW Institute, reflecting the expectations of investors for the next six months, was 55 points, significantly exceeding its November value of 39 points and being well above the economists’ estimate of 46 points.
At the same time, investors estimated the current economic situation in the country lower than in November. This indicator fell to minus 66.5 from minus 64.3 points in the previous month. Its fall was stronger than the decline expected by economists to minus 66 points. The negative value of this indicator has been observed for 18 months already.
At the same time, the ZEW report notes an increase in optimism about the prospects for the German economy, despite the negative impact of the increase in the number of COVID-19 infected on economic activity in the country. This is facilitated by advances in vaccine development and manufacture.
ZEW experts also reported that the index of business confidence in the eurozone economy in December was 54.4 points, significantly rising from the November level of 32.8 points.