Germany's ZEW Economic Sentiment falls after Trump victory

Germany's ZEW Economic Sentiment Index dropped to 7.4 in November 2024, down from 13.1 in October and well below expectations of 13, impacted by Donald Trump’s election victory and the collapse of the German government coalition.

Germany's ZEW Economic Sentiment falls after Trump victory

The assessment of current economic conditions also worsened, with the current conditions gauge falling to -91.4 from -86.9, missing forecasts of -85.9. ZEW President Professor Achim Wambach noted that the decline in economic sentiment is primarily attributed to the US election outcome, with rising economic expectations for the US and falling sentiment for China and the Eurozone.

Optimism grows in Germany amid snap election hopes

However, some optimism emerged in the final days of the survey, as hopes for improved economic prospects in Germany grew, particularly with the prospect of snap elections. "We are currently witnessing a dynamic shift in economic expectations," Wambach added.