Breaking: German outlook drops to two years low amid fears of trade war
The monthly ZEW economic outlook has dropped to a two year low in March, amid growing investor concerns of global trade wars and the effects of a Euro appreciation.
Compared to the previous month, the six-month economic outlook for Germany dropped by -12.7 basis points, the outlook for the Eurozone fell by -15.9 basis points month on month, according to the monthly ZEW survey among 220 institutional investors and analysts in Germany.
The assessment of the current economic situation was slightly less severe, with the index for Germany declining by -1.6 basis points month on month, the assessment of the Eurozone deteriorated by -1.5 basis points compared to the previous month.
“Fears that the US might cause a global trade war have certainly led to a more cautious outlook among respondents. Another factor is the strong level of the Euro, which represents a burden for an export-oriented economy like Germany. Nevertheless, in combination with a relatively stable assessment of the current situation, the long-term outlook remains positive” comments ZEW president Achim Wambach.