(Bloomberg) --

Investors expressed confidence that Germany’s economy will start growing again in the third quarter, after the government started easing restrictions to contain the coronavirus.

While an assessment of current conditions in Europe’s largest economy plummeted to the lowest in more than a decade in April, expectations for the next six months climbed to the highest level since mid-2015.

The headline gauge climbed to 28.2 from minus 49.5, compared with expectations for a reading of minus 42.0. No economists predicted a positive number.

“Financial-market experts are beginning to see a light at the end of the very long tunnel,” ZEW President Achim Wambach said in a statement. They indicated that they don’t expect output to return to pre-virus levels before 2022, he said.

Economic output declined sharply in the first quarter and will shrink at an even steeper pace in the current period, with a “rapid and strong” recovery unlikely as long as restrictions remain in place, the Bundesbank said Monday.

What Bloomberg’s Economists Say...

“Germany’s most stringent coronavirus containment measures started later than elsewhere, finished sooner and look less damaging than in many other European countries. Add in a large dose of fiscal support and it looks as if the euro area’s largest economy will do better than most.”

- Jamie Rush. Read his GERMANY INSIGHT

Both the German government and the European Central Bank have unveiled massive stimulus programs to prevent lasting economic damage, though company reports from across the region reflect significant pain. Leading automaker Volkwagen AG last week scrapped its full-year outlook after sales and vehicle production were brought to a halt in key markets, while sportswear maker Adidas AG was forced into seeking external aid.

Retailers may start to see tensions easing in coming weeks, after Chancellor Angela Merkel’s administration agreed with the country’s 16 states to allow smaller stores to reopen after a month-long shutdown. Still, many businesses like bars and restaurants remain shuttered, contributing to a continued drag on consumption.

Expectations for the economic outlook in the wider euro area also improved sharply, ZEW’s report showed. Austria became one of the first European countries to ease lockdown measures last week, and Lithuania is also lifting some restrictions.

©2020 Bloomberg L.P.