Germany’s business climate continues to deteriorate as the ifo business climate index plummets to its lowest level since the 2020 coronavirus recession, falling to 84.7 in December. Economists had expected only a slight decline. The sentiment indicates long-term economic weakness, with many firms anticipating stagnation and pessimistic investment plans for 2025. The situation could worsen with Donald Trump’s recent election victory, as potential tariffs on European imports pose further challenges for Germany’s export-driven economy.