Eurozone ZEW-Konjunkturerwartungen

The ZEW Indicator of Economic Sentiment for the Euro Area rose by 1 point from the prior month to 18 in January 2025, beating analysts’ expectations of a slight drop to 16.9. Nevertheless, concerns and uncertainty remain, stemming from Germany’s sluggish GDP growth, rising inflationary pressures, and political instability. These issues are compounded by difficulties in forming a coalition government in Germany and growing unease about the economic policies of the Trump administration. In January, about 60% of the surveyed analysts expected no changes in economic activity, 29% saw an improvement and 11% anticipated a deterioration. In the meantime, the indicator of the current economic situation increased by 1.2 points to -53.8 and inflation expectations surged by 9.1 points to -14.8.