German ZEW Drops in August

Germans are turning increasingly pessimistic on their country’s economy, as weakening emerging markets start to dampen the outlook, the latest index from the country’s ZEW institute shows.

In its latest survey of financial forecasters, the ZEW economic expectations index for September showed a drop to 12.1 from 25.0 in August.

ZEW President Clemens Fuest attributed the fall to a worsening economic outlook in the developing world.
“The weakening economic development in emerging markets dampens the economic outlook for Germany’s export-oriented economy. While economic growth in the second quarter was largely driven by external demand, it is becoming less likely that exports will stimulate growth in the near future,” Fuest said in a statement accompanying the indexes’ release.


Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza