The ZEW economic expectations for Germany continued to decline in the April 2026 survey. The index registered a drop of 16.7 points, settling at -17.2 points. Additionally, the assessment of the current economic situation also weakened, with the Germany situation indicator falling 10.8 points to -73.7 points from the previous month.
ZEW President Achim Wambach noted that expectations are turning negative. He stated that the economic fallout from the Iran conflict for Germany’s economy extends beyond mere price increases, arguing that concerns about a prolonged scarcity of energy supplies are dampening investment and diminishing the effectiveness of government stimulus.
Concerns surrounding the Iran conflict continue to affect industrial sector expectations. While the automotive sector remains relatively stable, showing a net score of -44.2 points, the outlook for the chemical and pharmaceutical industries worsened by 11 points compared to March. Similarly, expectations for the steel and metal production sectors declined sharply by 21 points compared to March. Furthermore, the construction sector’s projections dipped into negative territory by -3.8 points.
Expectations for the Eurozone also saw a significant downturn in April. The index was 11.9 points lower than March’s reading of -20.4 points, reflecting a worsening assessment of the situation. The overall situation evaluation for the Eurozone stood at -43 points, marking a 13.1-point decline from the previous month.
