Economic Sentiment in Germany Takes a Dive

The Centre for European Economic Research (ZEW) reported a significant drop in Germany's economic sentiment indicator to negative 14 in April, a decrease of 65.6 points from the previous month, falling short of expectations. 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, plummeting by 58.3 points to minus 18.5, with the current situation indicator dropping by 5.7 points to negative 50.9.

US Trade Policy Blamed for Uncertainty

"The unpredictable shifts in US trade policy are heavily impacting expectations in Germany, leading to a sharp decline. The announced reciprocal tariffs not only threaten global trade but also significantly heighten global uncertainty. This development is clearly reflected in the economic outlook for Germany and the Eurozone," stated ZEW President Achim Wambach.