The US tariffs and disappointed expectations of the new German government are causing a poor mood among companies in eastern Germany. The business climate index for the regional economy fell by 1.5 points to 86.5 points in April compared to the previous month, according to the Ifo economic research institute in Dresden. With the exception of the construction industry, expectations worsened in all sectors.
US tariffs and still little confidence in the new federal government
The reasons for the poor mood among East German companies are manifold, said Joachim Ragnitz, deputy head of the Ifo branch in Dresden, when asked about the situation. "In addition to the tariffs imposed by the USA on numerous products, the disappointment following the announcements of the new German government has also caused disillusionment."
In the manufacturing industry, the business climate has deteriorated significantly. Although companies improved their assessment of the current situation slightly, they were considerably more pessimistic about the future than in the previous month.
