German Investors Turn Gloomy as More Virus Curbs Prepared
Investor confidence in Germany’s economic recovery unexpectedly deteriorated after the government signaled a further tightening of pandemic restrictions.
A gauge of expectations fell to 70.7 in April from 76.6 the previous month, , according to a survey by the ZEW institute, missing estimates for an improvement. A measure of expectations for the euro zone also fell.
While the inclusion of general practitioners in Germany’s vaccination campaign has significantly bolstered the pace of inoculations, potentially bringing forward the time when lockdowns can be lifted, the country and the rest of the currency bloc are still in the midst of a third wave of infections.
“Fears of a stricter lockdown have led to a decline in expectations for private consumption,” ZEW President Achim Wambach said in a statement. “Nevertheless, the outlook for exports is better than in the previous month.”
German Chancellor Angela Merkel’s coalition has drafted legislation that would shift the power to impose Covid-19 restrictions to the federal government from regional leaders, and includes plans for nightly curfews as well as more non-essential store closures.
Recent data also showed a surprise drop in the nation’s industrial output in February.
Bundesbank President Jens Weidmann has said the country’s recovery might take hold later than previously expected. The institution predicted in December that output would grow 3% this year, a prospect it says is looking less likely now.
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