Published by Global Banking & Finance Review®
Posted on May 13, 2025
1 min readLast updated: January 23, 2026
Add as preferred source on GoogleGerman investor morale improved significantly in May, according to ZEW, with optimism rising due to a new government and stable inflation rates.
By Maria Martinez
BERLIN (Reuters) -German investor morale rose more than expected in May, recovering from its sharp decline the previous month, the ZEW economic research institute said on Tuesday.
The economic sentiment index rose to 25.2 points from -14.0 points in April. Analysts polled by Reuters had pointed to a reading of 11.9.
"With a new government in place, some progress in the tariff disputes and a stabilising inflation rate, optimism has increased," ZEW President Achim Wambach said.
The rebound compensates for some of the losses in April, when German investor morale posted its strongest decline since Russia invaded Ukraine in 2022 due to uncertainty unleashed by U.S. tariffs.
The indicator for assessments of the current economic situation fell in May to -82.0 from -81.2 points.
The score, in a range from minus 100 to plus 100, is based on a survey of about 350 Germany-based financial analysts at banks, insurers and large industrial companies.
(Additional reporting by Friederike Heine; Editing by Rachel More)
The article discusses the improvement in German investor morale in May, as reported by the ZEW economic research institute.
Investor morale improved due to a new government, progress in tariff disputes, and stabilizing inflation rates.
The ZEW economic sentiment index rose to 25.2 points in May.
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