German economic confidence reached its highest level in more than two decades in May as the slowing down of the third COVID-19 wave made financial market experts more optimistic, survey data from the ZEW – Leibniz Centre for European Economic Research showed Tuesday.

The ZEW Indicator of Economic Sentiment rose sharply to 84.4 in May from 70.7 in April. The last time the indicator had reached a higher level was in February 2000. The score was forecast to climb to 72.0.

The current conditions index rose by 8.7 points to -40.1 in May. This was also better than the economists’ forecast of -41.3.

The experts expect a significant economic upswing in the coming six months, ZEW President Achim Wambach, said. “The economic outlook for the euro area and the United States has improved considerably as well.”

The financial market experts’ sentiment concerning the economic development of the Eurozone increased sharply in May. The corresponding index advanced 17.7 points to 84.0 points.

The indicator for the current economic situation moved up 14.1 points to -51.4 points. The outlook for economic development in the euro area has thus improved very significantly, the survey showed.

Inflation expectations for the euro area gained 2.5 points to a new value of 77.6 points in May. The vast majority of experts expect the inflation rate to increase in the coming six months.

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