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BCN-19
GERMANY-ECONOMY-INDICATOR-INVESTMENTS
German investor confidence regains ground in January
FRANKFURT AM MAIN, Jan 22, 2019 (BSS/AFP) – Confidence among investors in
Germany regained ground in January but remained negative overall, a regular
survey published Tuesday showed as fears grow of a slowdown within the 19-
nation eurozone.
Economic expectations for the coming months improved to -15 points, the ZEW
institute’s monthly poll of 212 investors and analysts found, 2.5 points
better than in December.
“It’s remarkable that expectations didn’t continue to worsen given the
numerous global risks to the economy,” ZEW chief Achim Wambach said in a
statement.
“Financial market experts have already lowered their forecasts for economic
growth significantly in recent months… anticipating new, potentially
burdensome factors” like the growing risk of a hard Brexit or slower growth
in China, he added.
Looking to other elements of the survey, investors’ expectations for the
coming months across the 19-nation eurozone also improved slightly, while
remaining in negative figures.
But their judgement of the present economic situation in Germany crumbled
by 17.7 points, to 27.6.
The German economy suffered in the fourth quarter of 2018 from one-off
factors like low water in the Rhine slowing shipping and new emissions tests
hindering the car industry.
And external risks like Brexit, trade confrontations between Beijing,
Washington and Brussels and unforeseen political events like France’s “yellow
vest” protests could yet inflict sudden shocks.
On Monday, the International Monetary Fund predicted 1.3 percent growth for
Germany in 2019 — 0.6 points lower than its previous forecast.
Nevertheless, economists and politicians have pointed to strong domestic
fundamentals, including high levels of employment and rising wages, as
buttresses against a sudden downturn.
While “the fine times are over” as growth slowed to 1.5 percent in 2018
after 2.2 percent in each of the previous two years, Germany “is far from a
recession,” Finance Minister Olaf Scholz told the daily Neue Osnabruecker
Zeitung on Saturday.
BSS/AFP/SR/1935 HRS