Germany economic outlook falls as Iran war fuels energy fears

Economic expectations in Germany continued to decline in April as the ongoing Iran war raised concerns over potential energy shortages and discouraged new investment activity, according to the latest ZEW survey published on Tuesday.

The survey showed that the economic expectations indicator for Germany dropped to minus 17.2 points in April, marking a decrease of 16.7 points compared with the previous month, News.Az reports, citing foreign media.

At the same time, the assessment of Germany’s current economic situation also worsened, falling to minus 73.7 points, which is 10.8 points lower than the March figure.

Achim Wambach, president of ZEW, stated that the economic consequences of the Iran war for the German economy extend far beyond rising prices.

He noted that companies are increasingly concerned about long-term risks to energy supply, which in turn is discouraging investment and weakening the impact of government stimulus measures.

According to the survey, expectations for the automotive sector remained relatively stable at minus 44.2 points.

In contrast, outlooks for the chemical and pharmaceutical industries declined by 11 points compared with March, while the steel and metal production sector saw a sharper deterioration of 21 points.

Economic expectations for the construction industry also turned negative during the month, reaching minus 3.8 points.

For the eurozone as a whole, the expectations index decreased by 11.9 points in April, falling to minus 20.4 points.

Meanwhile, the assessment of the current economic situation in the eurozone dropped to minus 43 points, reflecting a decline of 13.1 points compared with the previous month.

News.Az 

By Nijat Babayev