Germany’s economic sentiment continued its upward trajectory for the fifth consecutive month, surpassing expectations in February, according to the Center for Economic Research for Europe (ZEW). The sentiment index rose to 28.1, beating analysts’ estimates of 22.0, and up from 16.9 in January.
The upbeat reading was supported by strong earnings expectations in the energy and export sectors, and the opening of the Chinese market. The current and six-month economic sentiment index also rose in February, indicating optimism for Germany’s economy.
Experts predict that the German economy could see a strong rebound in the first half of 2022, with the resumption of trade and industry activities following the COVID-19 pandemic. However, supply chain disruptions and inflation remain key concerns, posing potential headwinds to the country’s economic recovery.
Despite the uncertainty, the positive sentiment index reading is seen as an encouraging sign for the country’s economy, which has been on a gradual upward trend.