(MENAFN– ecpulse) German investor confidence resumed its drop for a ninth straight month in September amid worries from the low euro-area inflation and the melting situation in Ukraine.
The index of investor and analyst expectations edged down to 6.9 in September from 8.6 in August, yet better than estimates of 5.0, the ZEW Center for European Economic Research in Mannheim said on Tuesday.
The current situation gauge slipped to 25.4 from a prior 44.3, compared to forecast of 40.0.
In the coming period, the sanctions imposed on Russia by the EU and Russia’s ban to agricultural products will weigh growth prospects, especially in Germany.
"A flurry of unfavorable news reports relating to the international environment have dampened Germany`s economic outlook in the second half of the year," the Bundesbank said in its monthly bulletin released in August.
Also, there are graving concerns from the low inflation in the eurozone and its impact on growth.
A report due this week is likely to confirm that CPI inflation for the year ended August in the euro region fell to 0.3 percent.
The euro area is now predicted to grow 0.8 percent this year, compared with earlier forecasts of 1.2 percent, the OECD said on Monday.
“Growth remains weak in the euro area, which runs the risk of prolonged stagnation if further steps are not taken to boost demand” and that “further measures, including quantitative easing, are warranted,” the OECD said.
The Paris-based organization slashed its growth estimates for Germany to 1.5 percent this year.
As of 09:05 GMT, the euro pared some of its drop against the dollar to trade around 1.2937 after touching a low of 1.2920.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.