BERLIN, May 10 (Xinhua) -- Germany's economic confidence improved in May but remained at a very low level as the ZEW Economic Sentiment Index climbed 6.7 points month-on-month to minus 34.3 points, the Leibniz Center for European Economic Research (ZEW) said in its monthly expert survey published on Tuesday.

"The outlook for the economic situation in Germany is thus slightly less pessimistic," said ZEW President Achim Wambach. Analysts still expect the economic situation to continue to deteriorate, albeit at a slower pace than previously projected.

This was the third consecutive decline since the start of the Russia-Ukraine conflict. The ZEW's current situation indicator dropped 5.7 points to minus 36.5 points in May.

Both indicators continued to "point to a deterioration of the German economy during the next six months," the ZEW noted.

According to Wambach, most experts expected the European Central Bank (ECB) to increase interest rates within half a year, resulting in a "decline of inflation rates from their very high current level."

Inflation in Germany is at a 40-year high and reached 7.4 percent in April, according to preliminary figures released by the Federal Statistical Office (Destatis). Energy prices, including household energy and motor fuels, continued to rise rapidly, gaining 35.3 percent. Enditem

Related

Go to Forum >>0 Comment(s)