Euro Zone Investors Pessimistic Approach to The Economy

In Germany, which is known as the strongest economy of the Euro Zone with its high foreign sales input, the confidence of the investors in the economy decreased to the lowest level after the pandemic in April, together with the global inflation. The economy, which was improving in May, pushed investors to pessimistic thoughts after the data announced this month.

In Germany, the ZEW Index, an economic research institute, was at 54.3 in February before the Russian invasion of Ukraine. With the war that started with Russia's invasion of Ukraine, it decreased to -39.3 in March and -41 in April, which was the sharpest decrease after -49.5 seen at the beginning of the pandemic. The indicator, which was -34.3 in May, was displayed at -28 in June. Although Eurozone investors do not appear as pessimistic as in previous months, they seem to have lost their optimism they had before the pandemic and the war. According to the latest data; After the sharp decline in April, an improvement was recorded in May, while the index followed a pessimistic path with -28 in June. Inflation in the regional economies is at its highest level in recent years, and the energy problem between Russia and the region is the issue that bothers investors the most in the medium term. Uncertainty remains on how to create an alternative to embargoes.