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However, the assessment of Germany's economic situation improved considerably, with the corresponding indicator climbing 14 points to a new value of minus 32.5 points, as per ZEW.
Meanwhile, the sentiment of financial market experts regarding the eurozone's economic development worsened, with the indicator currently standing at 6.4 points, 3.6 points below the previous month's value. The eurozone's situation indicator improved significantly, rising 14.4 points to a new reading of minus 30.2 points.
“The financial market experts are still uncertain. The ZEW Indicator of Economic Sentiment has dropped noticeably and currently points to an unchanged economic situation for the next six months. Economic expectations are negatively affected by several factors. Experts expect banks to be more cautious in granting loans. The still high inflation rates and the internationally restrictive monetary policy are also weighing on the economy. On the positive side, the danger of an acute international financial market crisis seems to have been averted: earnings expectations for banks and insurance companies have improved compared to the previous month and are once again clearly in positive territory,” said professor Achim Wambach, ZEW president.
Fibre2Fashion News Desk (DP)