Investor confidence in the German economy has risen to its highest level in 21 years.
The roll-out of corona vaccines, in particular, ensures that investors have a more positive outlook on the future, reports research institute ZEW.
The ZEW indicator rose to 84.4 in May. With that, the index recovered strongly from the dip a month earlier due to stricter corona measures taken in Europe’s largest economy. In April, a level of 70.7 was reached; a month earlier, the index was 76.6.
Germany has significantly increased the rate of vaccination in recent weeks. Almost a third of the population has had an injection. With the improving health outlook, there is also growing hope that the country can phase out the strict virus restrictions that have been in place since November.
Another factor in the rise of the ZEW index is that the third corona wave continues more slowly than expected. Significant economic recovery is therefore scheduled for the next six months.