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ZEW Indicator of Economic Sentiment falls sharply

German economy faces potential recession

16 May, 14:31
(ANSA) - BELGRADE, MAY 16 - According to the most recent survey results, the ZEW Indicator of Economic Sentiment for Germany has dropped significantly.

The current sentiment indicator in Germany is 9.4 points negative. However, the eurozone situation indicator has improved slightly, rising by 2.7 points to a new reading of minus 27.5 points. Financial market analysts predict that the already unfavorable economic situation will worsen over the next six months, potentially pushing the German economy into a mild recession.

The decline in sentiment can be attributed in part to expectations of interest rate hikes by the European Central Bank (ECB). Furthermore, the possibility of a US default in the coming weeks has heightened uncertainty about global economic prospects. (ANSA).

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