The economic sentiment index rose to 42.9 points in April from 31.7 points in March. Analysts polled by Reuters had pointed to an April reading of 35.0.
"A recovering global economy is boosting expectations for Germany, with half of the respondents anticipating the country's economy to pick up over the next six months," said ZEW president Achim Wambach.
Contributing to the optimism were also the improved assessments of the situation and economic expectations in Germany's export destinations, Wambach said.
The assessment of the economic situation in Germany, however, remained almost unchanged. It rose to minus 79.2 points from minus 80.5 the previous month.
"Although this index is still deep in negative territory, a gradual improvement in economic development seems possible over the course of the year," said Ulrich Wortberg, senior economist at Helaba.
(Reporting by Miranda Murray and Maria Martinez, Editing by Friederike Heine and Rachel More)
By Maria Martinez
