Börse Express – ROUNDUP: ZEW economic expectations significantly impacted by corona virus

The outbreak of the corona virus also has the
Economic expectations of German financial experts significantly burdened.
The indicator of the Center for European Economic Research
(ZEW) fell in February from the previous month by 18.0 points to 8.7 points,
as the institute announced on Tuesday in Mannheim. It’s the
lowest since November 2019. Economists had an average
expected to drop to 21.5 points.

“The feared negative consequences of the coronavirus epidemic in China
on world trade lead to a marked decline in
ZEW economic expectations for Germany “, commented
ZEW President Achim Wambach the data. They are particularly strong
Estimates on the development of the export-dependent sectors
declined. All in all, the economy has turned late 2019 and at the beginning
of the new year developed worse than expected. Germany is
particularly affected by its close trade with China.

The indicator was still clear in the previous three months
gone up. “The corona virus is out of time,” commented Thomas
Gitzel, chief economist at VP Bank. The expected economic
Recovery in the first quarter is off the table for now. “If
this is conceivable during the rehabilitation
unfavorable, “said Gitzel. A shrinking of the German economy in the
first quarter is possible.

In addition to the economic expectations, the assessment also clouded
the current situation is stronger than expected. The indicator fell over
6.2 points to minus 15.7 points. A decline was expected
minus 10.0 points.

In the euro zone, the decline in expectations fell to 15.2 points
to 10.4 points less than in Germany. The indicator
for the current economic situation in the euro area remains almost in February
constant and is 10.3 points.

The euro rate entered only temporarily after the dates
little after. The German stock market hardly reacted to that
Daten./jsl/bgf/jha/

AXC0163 2020-02-18 / 12:03

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