German economy set to overcome VW effect
The monthly ZEW economic outlook for Germany has improved significantly compared to the previous month, suggesting that the German economy appears to overcome the initial hit of the VW scandal.
The six month economic outlook for Germany rose by 8.5bsp compared to the previous month, rising to 10.4bsp in total, which is still below the long term average of 24.8 bsp. The results mark the first improvement of the German outlook since seven months.
The assessment of the current situation in Germany declined only gradually, by 0.8bsp to 54.4bsp while the perception of the Eurozone economic climate improved slightly by 1.2bsp to -10bsp.
“The outlook for the German economy has brightened towards the end of the year, we have not seen a more negative economic outlook in response to the Paris terror attacks. The solid level of economic growth in Germany appears to be based on growing consumer demand among Germans, the recent devaluation if of the Euro and progressive growth in the US” comments ZEW president Clemens Fuest.
The November survey was conducted among 225 analysts and institutional investors in Germany.
It coincides with strong employment figures released by the Federal Statistical Office (Destatis) today, with employment reaching a record high of 43 million people in the third quarter of 2015, the highest level since German reunification.