Germany economic sentiment collapses in March amid Russia-Ukraine war

By Tuba Sahin

ANKARA (AA) - Germany's economic sentiment posted its largest ever decline in March amid Russia's war on Ukraine, a Mannheim-based economic research institute said on Tuesday.

The index of economic expectations fell 93.6 points to minus 39.3 in March, the European Economic Research (ZEW) said in a statement.

"A recession is becoming more and more likely," ZEW President Achim Wambach said, adding the sanctions against Russia besides a rise in inflation expectations are significantly dampening Germany's economic outlook.

"The experts therefore expect a stagflation in the coming months. The worsened outlook affects practically all sectors of the German economy, but especially the energy-intensive sectors and the financial sector," Wambach said.