Eurozone investor sentiment surprises with mild improvement

The ZEW Indicator of Economic Sentiment for the Euro Area increased by 1 point to 18 in January 2025, surpassing analysts' expectations of a slight dip to 16.9.

Eurozone investor sentiment surprises with mild improvement

However, concerns and uncertainty persist, driven by Germany's weak GDP growth, rising inflationary pressures, and political instability. These challenges are further exacerbated by difficulties in forming a coalition government in Germany and growing concerns about the economic policies of the Trump administration.

Current economic situation improves

In January, approximately 60% of surveyed analysts expected no change in economic activity, 29% anticipated improvement, and 11% foresaw a decline. Meanwhile, the indicator of the current economic situation rose by 1.2 points to -53.8, and inflation expectations jumped by 9.1 points to -14.8.