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German Business Morale Plummets Amid Iran Conflict

3/25/2026

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Story summary
  • The Ifo business climate index fell to 86.4 in March from 88.4 in February, signaling a sharp drop in German business morale amid the Iran conflict.
  • The current situation index remained at 86.7, while expectations declined to 86.0 from 90.2.
  • Clemens Fuest, president of the Ifo Institute, said uncertainty among companies has increased.
  • Experts warn that prolonged conflict could inflict economic damage on Germany and threaten the recovery.