Sharp Decline in German Economic Sentiment

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

Eurozone's Economic Outlook Worsens

The economic sentiment index for the Eurozone also experienced a downturn, decreasing by 58.3 points to minus 18.5. The current situation indicator for the region dropped by 5.7 points to negative 50.9, reflecting growing concerns over the economic climate.

Global Trade Policies Fuel Uncertainty

"The volatile shifts in US trade policies are heavily impacting expectations in Germany, leading to a sharp decline in sentiment. The announced reciprocal tariffs and their unpredictable changes have significantly heightened global uncertainty, adversely affecting economic expectations for both Germany and the Eurozone," stated ZEW President Achim Wambach.