German Economic Outlook Weakens Further

(MENAFN) Germany’s economic outlook continued to deteriorate in April, with growing concerns over energy supply disruptions and reduced investment activity linked to ongoing geopolitical tensions, according to the latest survey data.

The ZEW economic expectations index dropped significantly, falling to minus 17.2 points—down 16.7 points compared to the previous month. At the same time, assessments of current economic conditions also worsened, declining to minus 73.7 points, reflecting a further drop from March levels.

Achim Wambach, head of the ZEW institute, indicated that the impact of the ongoing conflict extends beyond rising prices. He noted that companies are increasingly worried about sustained energy shortages, which is dampening investment plans and limiting the effectiveness of government support measures.

Sector-specific data showed mixed results. Expectations in the automotive industry remained relatively stable despite remaining in negative territory. However, outlooks for the chemical and pharmaceutical sectors declined noticeably, while the steel and metal industries saw a sharper downturn.

The construction sector also shifted into negative territory during the month, signaling weakening confidence across a broader range of industries.

The downturn was not limited to Germany. Across the eurozone, economic expectations also fell, with the regional index dropping further into negative territory. Assessments of current conditions in the euro area similarly declined, highlighting widespread economic uncertainty across Europe.

MENAFN21042026000045017281ID1111011232