Tuba Ongun
18 April 2023•Update: 18 April 2023
ANKARA
Germany's economic sentiment unexpectedly collapsed in April compared to a month ago, as the market had estimated growth, according to data released by an economic research institute on Tuesday.
The Leibniz Centre for European Economic Research's (ZEW) indicator of economic sentiment for Germany sank for the second straight month to 4.1 in April, from 13 in March.
The reading suggests that no significant recovery in the economic situation is to be expected in the next six months.
On the other hand, an index of current conditions surged in Europe's largest economy to minus 32.5 points in April, a rise of 32.4 points from a month earlier.
ZEW head Achim Wambach stressed that economic morale was hit by a possible global banking crisis besides persistent inflation and tight monetary policy.
"On the positive side, the danger of an acute international financial market crisis seems to have been averted: Earnings expectations for banks and insurance companies have improved compared to the previous month and are once again clearly in positive territory," Wambach said.
The ZEW indicator of economic sentiment for eurozone also fell 3.6 points month-on-month to 6.4 in April.
Assessment of the current situation in the single currency zone soared by 14.4 points from March to 30.2 points.
