Wall Street Journal: A Dark Autumn Awaits the German Economy

Germany’s economic outlook sharply deteriorated in September, adding to the ongoing weakness in Europe’s largest economy.

According to a report published by the Wall Street Journal, the ZEW Economic Sentiment Index, which tracks analysts’ expectations for the economy over the next six months, dropped by 15.6 points to reach 3.6 points in September, compared to August, far below the forecast of 15.5 points.

The index had been in positive territory since November 2023, but the latest figures indicate that the number of optimistic and pessimistic analysts is now equal regarding the German economy.

Achim Wambach, President of the German Institute for Economic Research (ZEW), said that “hopes for a quick economic improvement are clearly fading.”

Moreover, the indicator for the current economic situation in Germany fell to levels close to those seen at the start of the COVID-19 pandemic in the spring of 2020. According to Robin Winkler, Chief Economist at Deutsche Bank, the index dropped to -84.5 points from -77.3 points, marking its lowest level since May 2020.