German investor confidence suffered a record slump in March due to Russia’s invasion of Ukraine and economic sanctions, making a recession in Germany more likely.
- The ZEW economic research institute stated its economic sentiment index fell to -39.3 points from 54.3 in February. That fall was the largest since the survey started in December 1991.
- Achim Wambach, ZEW President, stated that a recession is becoming more and more likely due to the war in Ukraine significantly dampening the economic outlook for Germany.
- Wambach further stated that the collapsing economic expectations are accompanied by a strong increase in inflation expectations.
- An index for current conditions dropped to -21.4 from -8.1. The consensus outlook was for a reading of -22.5.
German industrial production surged at the start of the year, but economists stated it could plunge due to the fallout from Russia’s invasion of Ukraine.
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Source: ZEW
