EU Economics

Germany heading for economic NIGHTMARE as confidence PLUNGES

CONFIDENCE in Germany’s economy has fallen dramatically, as exports tumble and trouble looms over the country’s prized car industry, a top survey has revealed.

german economy newsGETTY

Confidence in Germany’s economy has plunged

The outlook for the eurozone powerhouse plunged for the third month in a row, according to the respected ZEW economic sentiment index.The think-tank admitted there was a “high degree of nervousness over the future path of growth”.

Germany’s exports are suffering after the euro reached a two and a half year high against the US dollar.

The economy is largely driven by overseas sales, particularly from the car industry.

But in a double blow to the sector, top auto brands are being investigated for collusion over the diesel-emissions scandal.

The ZEW think-tank’s economic sentiment index dropped 7.5 points in August to 10 points – well below expectations of a reading of 15.

The dire reading put pressure on the euro, which fell against the US dollar after the survey was released.


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