BERLIN (Reuters) – Investor sentiment in Germany fell for the third straight month in August as fears that rising Covid-19 infections and a fourth wave of cases could hamper recovery in Europe’s biggest economy, showed a survey this Tuesday.
Economic research institute ZEW said its survey on economic investor sentiment dropped to 40.4 from 63.3 points the previous month. Reuters poll predicted a drop to 56.7.
“This points to growing risks to the German economy, such as a possible fourth wave of Covid-19 starting in autumn (from the Northern Hemisphere) or a slowdown in growth in China,” ZEW President Achim Wambach said in a statement.
The current conditions sub-index rose to 29.3 from 21.9 in July and against a forecast of 30.0 points.
“The clear improvement in the assessment of the economic situation, which has been going on for months, shows that expectations are also weakening due to the highest growth already achieved,” added Wambach.
Although the numbers reflect growing concerns about a fourth wave linked to the Delta variant of the coronavirus, which is more infectious, the case numbers in Germany are still lower than in other large countries in Europe.
(By Michael Nienaber)
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