Investment sentiments in the Eurozone have reached a yearly low.

Investment sentiments in the Eurozone countries deteriorated in January, reaching the lowest level in the past year. The biggest impact comes from Germany.

According to Reuters, the Sentix index for the Eurozone declined to -17.7 in January from -17.5 in December. This is the lowest level since November 2023, but better than analysts expected, who predicted a figure of -18.0.

'The Eurozone economy is at risk of losing its momentum in the long term,' the survey stated. It also notes that the recession situation in Germany negatively affects the Eurozone countries.

The survey conducted from January 2 to 4 among 1,121 investors showed a slight improvement in expectations to -5.0 in January from -5.8 points in the previous month.

However, this positive indicator exceeds the deterioration in the assessment of the current situation, which fell to -29.5 in January from -28.5 in December. This is the lowest level since October 2022.

The survey also showed that Germany, the largest economy in Europe and preparing for federal elections next month, is likely in recession and will not emerge from it anytime soon.