Economic sentiment in Germany down sharply in August

ISTANBUL

The economic sentiment index in Germany dropped sharply by 18 points to 34.7 points month-on-month in August, the ZEW institute said on Tuesday.

The assessment of the current economic situation has also deteriorated, the institute stated.

It added: "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."

ZEW President Professor Achim Wambach said that financial market experts are disappointed by the announced EU–US trade deal.

The US and the EU on July 27 reached a trade deal with 15% tariffs, ending months-long uncertainty.

As part of the deal, the EU will invest $600 billion in the US and purchase $750 billion in US energy and military equipment.

"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 noted.