German Economic Sentiment Takes a Dive

The economic sentiment indicator in Germany plummeted to negative 14 in April, marking a significant decrease of 65.6 points from the previous month. This downturn surpassed expectations, as reported by the Centre for European Economic Research (ZEW) on Tuesday. In contrast, the current situation indicator saw a slight improvement, increasing by 6.4 points to negative 81.2.

Eurozone Economic Sentiment Also Falls

Similarly, the economic sentiment index for the Eurozone experienced a sharp decline, dropping by 58.3 points to minus 18.5. The current situation indicator for the Eurozone also worsened, decreasing by 5.7 points to negative 50.9.

Global Trade Uncertainties Weigh Heavy

"The erratic changes in US trade policy are significantly impacting expectations in Germany, leading to a sharp decline in sentiment. The potential repercussions of announced reciprocal tariffs on global trade, coupled with the unpredictability of these changes, have greatly amplified global uncertainty. This development is clearly reflected in the economic expectations for both Germany and the Eurozone," stated ZEW President Achim Wambach.