Burdened by the war in Ukraine, the economic expectations of German financial experts have collapsed more than ever.
The mood barometer of the Mannheim research institute ZEW fell in March compared to the previous month by 93.6 points to minus 39.3 points, as the ZEW announced on Tuesday.
On average, experts had only forecast a drop to plus 5 points.
It is the sharpest drop in expectations since the survey began in December 1991. For comparison, at the beginning of the pandemic in March 2020, the indicator fell by 58.2 points.
Following the recent decline, expectations are at their lowest level since March 2020.
The assessment of the economic situation also clouded over.
However, the decline was much more moderate.
The indicator fell by 13.3 points to minus 21.4 points.
Here minus 22.5 points had been expected.
"A recession is becoming more and more likely," commented ZEW President Achim Wambach.
"The war in Ukraine and the sanctions against Russia are significantly worsening the economic outlook for Germany." This goes hand in hand with extremely rising inflation expectations.