Economic expectations in Germany fell more sharply than ever in March as the recession became more likely due to Russia’s invasion of Ukraine, according to research by the ZEW Institute for Economic Research.
The index of economic expectations fell to -39.3 points in March from 54.3 points in February, much lower than the 3 points expected by economists.
This is the largest drop since December 1991, when data began to be recorded.
“The war in Ukraine and the sanctions against Russia are having a significant impact on Germany’s economic prospects,” said ZEW President Achim Wambach.
The collapse of economic expectations is accompanied by an extreme rise in inflation expectations, he stressed.
Therefore, he added, experts expect stagnant inflation in the coming months.
Views on the current economic situation in Germany also deteriorated, with the index falling to -21.4 from -8.1 in February, ZEW reports.
Economists expected the index to reach -20 points.
Source: Capital
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