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Germany’s economic outlook showed tentative signs of improvement in October, with the ZEW Indicator of Economic Sentiment rising modestly, although underlying risks —ranging from persistent inflation to sluggish trade — continue to cast a shadow over the country’s recovery.
The ZEW index rose two points to 39.3 in October 2025, a modest rebound from September's reading of 37.3.
While marking the highest level since July's post-pandemic peak, the outcome fell short of economists' forecasts of 40.5, underscoring lingering uncertainty among financial market experts.
“Experts are still hoping for an upturn in the medium term,” said ZEW President Professor Achim Wambach.
“Despi
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