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Expectations for economic growth in Germany slumped in July, falling even slightly below their level during the pandemic, data from the ZEW economic research institute showed Tuesday.
The index of economic expectations fell to minus 53.8 in July from minus 28.0 in June. Economists polled by The Wall Street Journal had projected the index dropping to minus 41.0.
“The current major concerns about the energy supply in Germany, the European Central Bank’s announced interest rate hike and further pandemic-related restrictions in China have led to a considerable deterioration in the economic outlook,” said Achim Wambach, president of the ZEW institute.
The experts also assess the current economic situation significantly more negatively than in the previous month and have further lowered their already unfavorable forecast for the next six months, Mr. Wambach said.
The index gauging current conditions fell to minus 45.8 in July from minus 27.6 in June, below economists’ expectations of minus 34.0.
Write to Maria Martinez at maria.martinez@wsj.com
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