Investor sentiment in Germany rose more than expected in July, according to the ZEW survey. Expectations for the economy increased by 5.2 points, reaching plus 52.7 points. This sentiment rebound followed an earlier drop due to tariff threats from the US. The survey indicated that two-thirds of experts anticipate economic improvement, supported by hopes of resolving the US-EU customs dispute and government stimulus. The current performance barometer also improved significantly, reflecting positive investor sentiment attributed to recent tax incentives and infrastructure investment plans.
Investor sentiment in Germany rose more than expected in July, with the ZEW survey indicating a 5.2 points increase, reaching its highest level since February 2022.
Despite ongoing global trade uncertainties, two-thirds of experts forecast an improvement in the German economy, buoyed by hopes for resolution to the US-EU customs dispute.
Chancellor Friedrich Merz's initiatives, including tax breaks and a significant spending plan, contribute to the improved investor mood regarding the current performance of the economy.
Investor expectations in Germany now stand at plus 52.7 points, a significant recovery from April lows, amid a backdrop of tariff threats and market resilience.
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