Germany Posts Drop in Economic Confidence
(MENAFN) Germany’s economic sentiment index plunged dramatically by 18 points to 34.7 in August, according to the latest figures released Tuesday by the ZEW Institute. The institute also reported a worsening assessment of the country’s current economic conditions.
“The situation indicator for Germany settles at minus 68.6 points and is thus minus 9.1 points below the reading recorded in the previous month,” the ZEW statement highlighted.
ZEW President Professor Achim Wambach attributed the negative outlook in part to market experts’ dissatisfaction with the recently announced EU–US trade agreement. The deal, finalized on July 27, ended months of uncertainty by establishing 15% tariffs between the two economic powers.
Under the agreement, the European Union commits to investing $600 billion in the United States and purchasing $750 billion in US energy and military goods.
The institute also noted a downward revision for the broader eurozone’s growth forecast. “Although initial growth estimates for the eurozone were better than those for Germany in the second quarter of 2025, these expectations have also been revised downwards for the monetary union and are currently at plus 25.1 points—minus 11.0 points below the previous month’s reading,” it said.
This sharp decline signals growing economic concerns amid shifting trade dynamics and subdued market confidence in Europe’s largest economy.
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