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Sign InGermany’s Ifo Business Climate Index experienced a significant decline in April, dropping from 86.3 to 84.4, marking its lowest level since May 2020. This plunging index confirms that the German economy is back in crisis mode as companies grow increasingly concerned about the adverse economic impact of the Middle East conflict. The Expectations Index also fell to 83.3, reflecting heightened anxiety among German firms regarding the future outlook amid geopolitical tensions. Analysts attribute this downturn primarily to the ongoing Iran crisis, which has severely undermined business confidence. These figures reinforce recessionary fears for the Eurozone's largest economy, aligning with recent weak data from ZEW and PMI surveys. Investors are now closely monitoring how this persistent weakness might influence future ECB monetary policy decisions.