Economic Sentiment Takes a Hit

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

Eurozone's Economic Outlook Worsens

The economic sentiment index for the Eurozone also experienced a sharp decline, dropping by 58.3 points to minus 18.5, with the current situation indicator 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. The announced reciprocal tariffs not only pose risks to global trade but also contribute to heightened global uncertainty. This development is clearly reflected in the economic expectations for both Germany and the Eurozone," stated ZEW President Achim Wambach.