Economic sentiment in Germany rebounded in December even as expectations about the country's broader economic situation remained largely unchanged, the Mannheim-based ZEW Institute said Tuesday.
The ZEW Indicator of Economic Sentiment rose to 45.8 points in December, up by 7.3 points from November, and it also exceeded the market expectations of 38.4 for the month.
On the other hand, the assessment of the current economic situation fell slightly, decreasing 2.3 points to minus 81.
ZEW President Achim Wambach said the expectations have become more positive, as after three years of economic stagnation, chances for a recovery of the economy are good, and this is reflected in the sentiment.
Wambach stated that the expansive fiscal policy will provide new momentum to the German economy.
"However, the recovery remains fragile. Measures for dealing with persistent trade conflicts, geopolitical tensions and the absence of investments are likely to figure on the reform agenda for 2026 as well," he added.
For the wider eurozone, expectations also showed an improvement, rising 8.7 points to 33.7 in December, according to the institute.
