ZEW Indicator Rises at End of Year

In December 2025, expectations about Germany’s economic situation are increasing. The indicator has climbed to plus 45.8 points and is thus plus 7.3 points above the previous month’s reading. However, the assessments of the current economic situation have deteriorated slightly. The situation indicator for Germany is at minus 81.0 points, which means it has fallen minus 2.3 points below the value recorded in the previous month.

“Expectations have become more positive. After three years of economic stagnation, chances for a recovery of the economy are good and this is reflected in the sentiment. The expansive fiscal policy will provide new momentum to the German economy. However, the recovery remains fragile. Measures for dealing with persistent trade conflicts, geopolitical tensions and the absence of investments are likely to figure on the reform agenda for 2026 as well,” comments ZEW President Professor Achim Wambach, PhD on the most recent survey results.

It is worth noting that the situation of the automobile industry has improved; the indicator has climbed by 7.7 points to minus 22.0 points. Other export-oriented sectors, such as the chemical and pharmaceutical industries and the metal sector, also show increases, albeit less pronounced. Despite the supportive fiscal policy, these industries are still suffering from weak export volumes due to high tariffs and structural competitive disadvantages. 

The expectations for the eurozone – currently at plus 33.7 points – have risen by plus 8.7 points compared to the previous month’s value. The improvement is therefore greater than the one for Germany. In contrast, the assessment of the economic situation have remained practically unchanged and are now at minus 28.5 points, i.e. minus 1.2 points below the previous month’s reading.