Economic sentiment in Germany suffers notable setback this month

(MENAFN) In September, Germany's economic outlook suffered a notable setback, as indicated by a significant drop in economic sentiment according to data from the ZEW economic research institute. The ZEW economic sentiment index plummeted by 15.6 points from the previous month, reaching just 3.6 points. This figure marks the lowest level of economic sentiment since October of the previous year, signaling a sharp deterioration in economic expectations.

Achim Wambach, the head of ZEW, expressed concern over the waning optimism regarding Germany’s economic future. Wambach observed that hopes for a swift recovery in the economic situation are diminishing, reflecting a broader sense of unease about the country's economic prospects.

Furthermore, the current economic situation assessment in Germany also saw a significant decline. The index fell by 7.2 points to reach minus 84.5 points, a level not seen since May 2020. This sharp drop underscores the growing pessimism about the present state of the German economy.

The economic sentiment for the euro area as a whole also experienced a decline. The ZEW indicator for the euro area decreased by 8.6 points from the previous month, settling at 9.3 points in September. This decline mirrors the broader regional sentiment and highlights the challenges facing the eurozone's economic outlook.

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