Germany's economic sentiment deteriorates in April: Research institute

Prospect of stagflation over next 6 months remains, analyst says

By Ovunc Kutlu

ANKARA (AA) - Germany's economic sentiment deteriorates in April, plummeting to minus 41.0, according to an economic research institute on Tuesday.

This is a drop of 1.7 points from minus 39.3 in March, the Leibniz Centre for European Economic Research (ZEW) said.

This is the second time the indicator has recorded a decline since the start of Russia's war on Ukraine.

"The experts are pessimistic about the current economic situation and assume that it will continue to deteriorate," ZEW President Achim Wambach said in a statement," adding "the prospect of stagflation over the next six months remains."

In addition, 47.5% of the experts expect the inflation rate to increase in the next six months, according to ZEW.

The situation indicator fell to a new level of minus 28.5 points, dropping 6.6 points compared to the previous month.

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