ZEW index

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ZEW index from December 1991 to December 2011: blue economic expectations, red: their mean value, gray: assessment of the current situation and their mean value

The ZEW Index is a business cycle index from the Mannheim Center for European Economic Research (ZEW). Around 400 analysts and institutional investors are asked about their medium-term expectations with regard to economic and capital market developments .

The ZEW index is considered to point the way for the more prominent ifo business climate index . The historical mean is 24.8 (as of November 2015).

The economic expectations indicator shows the difference between the positive and negative assessments for future economic development over a period of six months in Germany.

example

If 30 percent of the survey participants are of the opinion that the economic situation will improve and 40 percent are of the opinion that it will get worse, the balance for the economic expectations is −10. The proportion of those who do not expect any change in the economy does not play a role in the balance.

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