“However, the noticeable increase in tariffs on imports from the EU that came into force in April and the threat of further tariff increases weighed on the further course of the economy in Germany,” said Timo Wollmershäuser, head of forecasts at ifo.
The results of the ifo Business Surveys from April also point to a decline in economic output. The ifo Business Climate has improved slightly, recording its fourth consecutive rise. However, this was mainly due to an improved assessment of the current situation, while the outlook for the coming months deteriorated, particularly among industrial companies.
According to Wollmershäuser, it is not yet clear whether these assessments will be confirmed in the coming months. “At the same time, industrial companies have reported a sharp increase in uncertainty, which means they are currently finding it more difficult to assess their business than usual.” In particular, the US administration’s shift in economic policy harbours risks. Opportunities could arise if the new German government takes swift decisions.
ALCHEMPro News Desk (RR)
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