Germany's economic sentiment plunges in April amid tariff concerns

By Mucahithan Avcioglu

ISTANBUL (AA) - Germany’s economic outlook plummeted in April due to the uncertainty unleashed by US tariffs, according to data from the ZEW economic research institute released on Tuesday.

The index fell 65.6 points from the previous month, reaching minus 14 points, the lowest level since July 2023.

The 65.6 points plunge in the sentiment marked the strongest decline in expectations since the start of Russia's war on Ukraine in 2022, according to the report.

The figure also came well below the market forecasts of 10.6 points for the month.

“The erratic changes in the US trade policy are weighing heavily on expectations in Germany, which have sharply declined," ZEW President Achim Wambach said.

"It is not only the consequences the announced reciprocal tariffs may have on global trade, but also the dynamics of their changes, that have massively increased global uncertainty. The economic expectations for Germany and the Eurozone reflect this development,” he added.

The ZEW indicator of economic sentiment for the euro area also saw a decline, down 18.5 points month-on-month to minus 58.3 points in April.

On the other hand, the assessment of the current economic situation in Germany improved slightly, rising by 6.4 points to minus 81.2 points, the lowest since May 2020.