FX.co ★ German Investor Sentiment Plunges on Tariffs

In April 2025, the ZEW Indicator of Economic Sentiment for Germany plummeted to -14, marking its lowest point since July 2023. This dramatic decline from 51.6 in March was far below the anticipated 9.5. The downturn represents the most significant drop in expectations since Russia's incursion into Ukraine in 2022. The ongoing instability in U.S. trade policy is exerting considerable pressure on economic sentiment. "The announced reciprocity tariffs are not only threatening global trade but their unpredictable evolution has significantly heightened global uncertainty. This is notably impacting export-driven sectors such as automotive, chemicals, and industries like metal, machinery, and steel production, which had recently shown notable improvements," commented Prof. Achim Wambach, PhD, President of ZEW. Meanwhile, perceptions of the current economic climate saw a modest enhancement, rising to -81.2 from -87.6.