German Recession Fears Resurface as Investor Outlook Weakens
- ZEW expectations index declined to -10.7 in May; est. -5
- Economy could slip into a mild recession, Wambach says
Tourists visit Brandenburg Gate in Berlin, Germany.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
Investors’ confidence in Germany waned for a third month, reigniting fears that Europe’s largest economy is heading for a recession.
The ZEW institute’s gauge of expectations fell to -10.7 in May from 4.1 in April — the first sub-zero reading of 2023. Economists polled by Bloomberg had expected a decline to -5. An index of current conditions also deteriorated.