Germany’s economic sentiment edges down in February, despite expectations

By Mucahithan Avcioglu

ISTANBUL (AA) - Economic sentiment in Germany ticked down in February, as the German economy has entered a phase of "fragile" recovery, the Mannheim-based ZEW Institute said Tuesday.

The ZEW Indicator of Economic Sentiment was at 58.3 points in February, down by 1.3 points from January, while the markets had expected it to rise to 65.8.

On the other hand, the assessment of the current economic situation improved, increasing by 6.8 points to minus 65.9.

ZEW President Achim Wambach said the ZEW Indicator remains stable, and the German economy has entered a phase of recovery, albeit a fragile one.

"There are still considerable structural challenges, especially for industry and private investment," Wambach said.

He stated that the impending reforms of the system of social insurances should be used to significantly enhance Germany’s attractiveness as a business location.

For the wider eurozone, expectations also showed a slight decline, falling 1.4 points to 39.4 in February, according to the institute.