Sharp Decline in German Economic Sentiment

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, according to the Centre for European Economic Research (ZEW).

Current Situation Indicator Shows Slight Improvement

Despite the downturn in sentiment, the current situation indicator saw a modest increase of 6.4 points, reaching negative 81.2.

Eurozone Economic Sentiment Also Declines

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

Global Trade Uncertainties Weigh Heavy

"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 increased global uncertainty, reflected in the economic expectations for Germany and the Eurozone," stated ZEW President Achim Wambach.