German Investor Confidence Plummets on War in Ukraine.

Investor confidence in Germany's economic recovery has plummeted due to concerns about the impact of Russia's invasion of Ukraine. The ZEW institute's gauge of expectations dropped to its lowest level since the start of the Covid-19 pandemic. The war in Ukraine and sanctions against Russia are dampening Germany's economic outlook, with a recession becoming increasingly likely. The conflict has also led to higher energy and commodity prices, increasing inflationary pressure and potentially affecting consumer spending. The European Central Bank has lowered its economic growth forecast for the euro area and expects inflation to exceed its target. Additionally, Germany is facing a surge in Covid-19 cases, raising concerns about the pandemic's impact. [Extracted from the article]