Economic Outlook Improves in Germany and the Eurozone, According to ZEW Survey
The Center for European Economic Research (ZEW) has reported a significant increase in its economic sentiment indicator for Germany, with a June 2025 survey showing a reading of +47.5 points, a 22.3-point increase from the previous month. ZEW President Achim Wambach commented on the results, stating that the mood has continued to brighten, with the index experiencing a notable improvement in June.
The increase in sentiment is attributed to rising investments and consumer demand, as well as the anticipated positive impact of the government’s announced fiscal measures. In addition, the recent interest rate cuts by the European Central Bank (ECB) may be contributing to the improved outlook, potentially bringing an end to the three-year economic stagnation in Germany.
The assessment of the current economic situation also saw a significant improvement, with the indicator rising by 10 points to -72.0 points, the largest increase since April 2023. Although this remains the lowest value among the analyzed countries and the Eurozone, the trend suggests a gradual recovery.
The Eurozone’s economic outlook also improved substantially, with the indicator rising by 23.7 points to +35.3 points, a significant positive reading. The assessment of the economic situation in the Eurozone also improved, with a reading of -30.7 points, an 11.7-point increase from the previous month.