German investor confidence has improved for the third consecutive month, indicating that people hope that ending more than a year of interest rate hikes can help Europe's largest economy overcome its current weakness. It is understood that the expected index of ZEW Research narrowed from -11.4 in September to -1.1 in October, which is better than economists' predictions.
On Tuesday, Chairman of ZEW, Achim Wambach, said in a statement: "We seem to have passed the lowest point. While economic expectations are heating up, people are also expecting inflation to further decline, and currently more than three-quarters of respondents expect short-term interest rates in the Eurozone to remain stable
After the winter economic downturn caused by the Russia-Ukraine conflict, Germany will face an economic downturn in the second half of 2023, but it may rebound next year. The German government expects that as inflation cools and wage increases help revive domestic demand, economic growth will rebound to 1.3%. However, analysts surveyed expect that the economic recovery will only be weak.
In addition, rising borrowing costs have been harming consumers and businesses, but the European Central Bank has hinted that interest rates may have reached stable levels.
It is reported that Germany's sluggish performance this year has attracted attention to structural headwinds, including from excessive dependence on China to rapid population aging. In response, Oya Celasun, Deputy Director of the European Department of the International Monetary Fund (IMF), stated last Friday that the institution believes that "growth faces long-term challenges".
However, German Finance Minister Christian Lindner refuted this negative sentiment at the IMF's annual meeting last week, stating that" A pessimistic prophecy is inappropriate;, Because Germany" There is enormous potential for recovery and a solid economic foundation;.