Crisis in Ukraine Drags Economy in Germany

The eurozone’s flatlining economy took another hit on Monday when data showed German business sentiment sagging for the fourth consecutive month.

 Chancellor Angela Merkel attributed some of her own country’s decline in the second quarter to the Russia-Ukraine crisis, over which tit-for-tat sanctions threaten trade. The Munich-based Ifo, a research firm, echoed some of those sentiments as it reported its business climate index, based on a monthly survey of some 7,000 companies, fell to a worse-than-expected 106.3 from 108, the lowest level in more than a year.


The findings agreed with data earlier in the month on the second-quarter contraction in Germany, the bloc’s biggest economy. Klaus Wohlrabe, an Ifo economist, said his institute expected growth in Germany to be “close to zero” in the third quarter.