Economic expectations in Germany are falling amid the US elections

November brought negative news for investor and analyst sentiment in both Germany and the eurozone. The data from the economic expectations index clearly show a decline in optimism.

The German index fell to a modest 7.4 points from 13.1 points in October. This sharp decline, significantly exceeding the projected 13 points, is primarily due to unstable political events both inside and outside Germany.

Donald Trump's victory in the US presidential election has caused a noticeable negative impact on economic expectations. While the economic recovery is growing in the United States, the situation in the eurozone and China, on the contrary, is deteriorating.

In parallel with the drop in the expectations index, the assessment of the current economic situation also decreased to -91.4 points, reaching the lowest level since May 2020. 

The situation in the eurozone is not much better: the index of economic expectations fell to 12.5 points from 20.1 points, not meeting forecasts for growth to 20.5 points. The assessment of the current economic situation in the eurozone also decreased by 3 points, reaching -43.8.