Index of investor confidence in the German economy fell sharply

The Zew Institute reported a sharp drop in investor and analyst confidence in the German economy in March. This was indicated by the index calculated by its experts, which amounted to minus 39.3 points against 54.3 points in February. Its collapse was a record since the end of 1991. The index this month was much lower than economists predicted a decline to 5 points. It is noted that this month the indicator characterizing the attitude of investors to the current economic situation in the country has also dropped significantly. It was minus 21.4 points, down from minus 8.1 points in February. At the same time, economists expected an even greater decline – to minus 22.5 points. The sharp deterioration of the index is due to the negative impact of the war unleashed by the Russian Federation against Ukraine and the anti-Russian sanctions imposed in connection with this. Increased inflationary pressure also affects the mood of business circles in Germany. According to experts, stagflation may soon occur in the country.

Source: xCritical.com