German Investor Outlook Drops to Worst Since 2022 on Iran War
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German investor optimism dropped to the lowest level in more than three years as the Iran war eats away at a rebound in Europe’s biggest economy.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — German investor optimism dropped to the lowest level in more than three years as the Iran war eats away at a rebound in Europe’s biggest economy.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.An expectations index by the ZEW institute declined to -17.2 in April from -0.5 in March. That’s worse than anticipated by all but three economists in a Bloomberg survey, which had a median estimate of -5.8. A measure of current conditions also fell.“The economic consequences of the Iran war for the German economy go far beyond price increases,” ZEW President Achim Wambach said Tuesday in a statement. “Businesses are concerned about long-term shortages of energy supply, and this discourages investment and weakens the effect of government stimuli.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Germany, like the rest of the continent, has seen inflation jump and sentiment sour due to the surge in energy prices resulting from the fighting in the Middle East. The full effect remains unclear, however.
The European Central Bank is expected to keep interest rates steady on April 30 as it assesses the damage.Germany’s leading research institutes see the economy growing at less than half the pace predicted only a few months ago, with public investments in infrastructure and defense providing at least some relief. Gross domestic product edged up by just 0.2% in 2025 following two years of contraction.The government is still weighing its response to the energy crisis. After unveiling €1.6 billion ($1.9 billion) in fuel-price relief, including a temporary gasoline-tax reduction, Chancellor Friedrich Merz said Sunday that his coalition has further measures prepared should the situation escalate. —With assistance from Joel Rinneby, Harumi Ichikura, Kristian Siedenburg and Alexander Weber.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.