German economy confidence has shown negative values for the first time since July 2016, adding fears of a trade war between the US and China and the conflict in Syria. The Business Climate Index of the Center for European Economic Studies, ZEW, reached 8.2 points in April, down from 13.3 points from March.
“The reasons for this decline in expectations can be found mainly in international trade conflicts with the US and the current situation in Syria”, said the ZEW President, Achim Wambach. “The significant drop in production, exports and retail sales in Germany in the first quarter of 2018 also have a negative impact on future economic development”, added he.
A total of 220 analysts participated in the study, which was conducted for two weeks in March. According to another study by the research center, the financial experts’ assessment of the current economic situation in Germany has fallen by 2.8 percentage points to 87.9 points.
The recent data on German exports has recently been released, which shows that he is losing some of the speed in February.
The export value of the largest European economy grew by 2.4% in February compared to the same month last year, reaching a total of 104.7 billion EUR (129 billion USD).
In January, exports rose by 8.6% on an annual basis. Reported on a monthly basis in February, exports dropped by 3.2%, mainly due to lower supplies to non-EU countries. As a country whose economy is highly export-oriented, Germany has a strong concern about possible violations of world trade and global economic growth, including the threat of a US-China trade war.