“The slump of the ZEW Indicator of Economic Sentiment was to be expected. The economy is on red alert. The financial market experts currently expect to see a decline in real gross domestic product in the first quarter, while also considering a further drop in the second quarter to be very likely. For the whole of 2020, the majority of experts currently expect a decline in real GDP growth of approximately one percentage point as a result of the corona pandemic,” comments ZEW President Professor Achim Wambach.
With a decrease of 59.9 points, financial market experts’ sentiment concerning the economic development of the eurozone worsens just as dramatically as that for Germany. The corresponding indicator currently stands at minus 49.5 points. The indicator for the current economic situation in the eurozone also experienced a sharp fall, dropping 38.2 points to a reading of minus 48.5 points compared to February.
The eurozone, too, has only experienced such a particular constellation of sentiment and assessment of the economic situation during the financial crisis at the end of 2008.