In contrast, evaluations of the current economic situation have seen a slight improvement. The corresponding indicator for Germany rose by 6.4 points to reach minus 81.2, though it remains firmly in negative territory, ZEW said in a press release.
“The erratic changes in the US trade policy are weighing heavily on expectations in Germany, which have sharply declined. 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,” said Achim Wambach, phD, president at ZEW.
Germany’s economic sentiment fell sharply in April 2025, plunging 65.6 points to minus 14.0—the steepest drop since Russia’s 2022 invasion of Ukraine, as per ZEW.
While the current situation slightly improved to minus 81.2, outlook remains bleak.
Export-driven sectors are hit hard.
Eurozone sentiment also dropped, down 58.3 points to minus 18.5.
Export-intensive sectors, such as the automobile and chemical industries as well as the metal, steel and mechanical engineering sectors, which recently enjoyed improved prospects, are affected. A risk of a new spike in inflation in Germany and the eurozone is currently not perceived by financial market experts.
The sentiment of financial market experts regarding the eurozone’s economic outlook has also taken a sharp downturn, with the indicator dropping by 58.3 points to stand at minus 18.5 points. The evaluation of the current economic situation in the euro area has also worsened, though less significantly, declining by 5.7 points from March to reach minus 50.9 points, added the release.
Fibre2Fashion News Desk (SG)
