Economic sentiment in Germany has tanked, which isn’t doing its exchange traded fund (ETF) any favors. Germans are increasingly pessimistic about the country’s chances of emerging from a recession anytime soon.
In February, the country’s economic sentiment index slipped a sixth consecutive month, says John Binz for Top News. The index is well above the lowest reading ever, but that’s cold comfort for Germany’s denizens.
Germany’s parliament has given the green light to a 2010 budget that contains a record level of debt to the tune of $118.6 billion. Germany’s debt is now 6% of GDP, up from 3.3% last year, reports the Sydney Morning Herald.
Noah Barkin for Reuters reports that rebalancing the German economy, as euro members such as France have urged, is not as straightforward as it might seem. Even if they were open to the idea, it would be tough for policymakers to wean the economy off its dependence on exports while boosting low consumption levels.
A couple days after European finance ministers adopted a bailout framework for debt-plagued Greece, a rift opened in the European Union after Germany signaled that International Monetary Fund (IMF) assistance may be needed for their country as well.
- iShares MSCI Germany Index (NYSEARCA:EWG)