German Economic Sentiment Takes a Hit

The economic sentiment indicator in Germany plummeted to negative 14 in April, marking a significant 65.6-point drop from the previous month and falling short of expectations, as reported by the Centre for European Economic Research (ZEW) on Tuesday. Meanwhile, the current situation indicator saw a slight improvement, increasing by 6.4 points to negative 81.2.

Eurozone Also Feels the Pressure

The economic sentiment index for the Eurozone wasn't spared, dropping 58.3 points to minus 18.5, with the current situation indicator also declining by 5.7 points to negative 50.9.

Global Trade Uncertainties to Blame

"The erratic changes in US trade policy are heavily impacting expectations in Germany, leading to a sharp decline. The announced reciprocal tariffs and their unpredictable dynamics have significantly heightened global uncertainty, reflected in the economic expectations for both Germany and the Eurozone," stated ZEW President Achim Wambach.