German business morale falls to lowest level since Covid

""Companies are considerably more pessimistic about the coming months. They also assessed their current situation as worse," Ifo president Clemens Fuest said."

""The German economy is being hit hard by the Iran crisis.""

""There are therefore growing signs that the expected economic recovery will be delayed until the second half of the year -- if it happens at all," Deutsche Bank economist Robin van Winkler said."

""Chancellor Friedrich Merz has promised to borrow and spend to revive the economy but critics charge that the cash will do little without far-reaching reforms that reduce costs and bureaucracy for businesses.""

In April, German business morale dropped to its lowest level since May 2020, with the Ifo confidence barometer falling to 84.4. Companies expressed increased pessimism about future conditions and assessed their current situation negatively. The Iranian crisis has severely impacted the German economy, particularly energy-intensive industries. Investor confidence has also declined, prompting the government to halve its growth forecast to 0.5 percent. Economic stagnation since 2022 is attributed to high energy costs and competition from China, leading to calls for significant reforms.

Read at The Local Germany