Status: 09/13/2022 1:42 p.m
Financial market experts expect the economy to deteriorate significantly. This is shown by the current economic barometer from the Mannheim Center for European Economic Research ZEW.
The economic situation will deteriorate significantly in the coming months. This is the assessment of the Mannheim Center for European Economic Research in its monthly survey of financial market experts. The analysts and institutional investors assess both the current situation and the development of the next six months more negatively than in August.
The corresponding ZEW index fell by 6.6 points to minus 61.9 points in September. This is the third decline in a row. According to the stock market professionals, the main reason for this is the worsening energy crisis. “The prospect of energy bottlenecks in winter makes the expectations for large parts of German industry even more negative,” explained ZEW President Achim Wambach.
Pessimistic view of the EU and China
In addition to the energy crisis, the financial market experts are also worried about the economic prospects for China. According to Wambach, the current statistical figures already show a decline in incoming orders, production and exports. This trend is likely to continue. Economic expectations have also fallen for the entire euro zone. For the current index, the ZEW asked 167 analysts and institutional investors for their assessment of the situation and their expectations for the coming months.
Not only the financial market experts rate the economic prospects negatively. Just yesterday, the Munich ifo Institute drastically lowered its economic forecast. Economic researchers only expect growth of 1.6 percent for this year. In the coming year, the economy is likely to shrink by as much as 0.3 percent. The ifo Institute warned of a winter recession triggered by high gas prices.