Germany’s economic confidence has surged to its strongest level since mid-2021, shrugging off renewed tariff threats from the US and signalling growing optimism that 2026 could mark a turning point for Europe’s largest economy.
The ZEW Economic Sentiment Index jumped to 59.6 points in January, up from 45.8 in December and well above market expectations of 50. This marks its highest reading since July 2021.
