16 May 2012
Ifo Economic Climate for the Euro Area Euro Area: Ifo Economic Climate in Euro Area Improves 10 May 2012
The Ifo World Economic Climate Indicator continued to rise and is now only slightly below its long-term average. The improvement was primarily driven by more positive expectations for the next six months. The current situation was also deemed somewhat friendlier than in last month’s survey. The results confirm a trend towards recovery in the world economy.
In Western Europe and North America the economic climate indicator rose significantly and remains higher than the long-term average value in North America. In both regions expectations for the next six-months were upwardly adjusted significantly. The current economic situation, on the other hand, showed only a slight improvement. After four successive declines, the indicator in Asia is approaching its long-term average. The current economic situation also improved, but is nevertheless seen as unfavourable. The six-month economic outlook for Asia, on the other hand, is clearly more positive than three months ago.
WES experts in Western Europe expect an increase in economic performance of 0.4% in 2012. In North America and Asia they predict stronger growth of 2.4% and 4.0% respectively.
Inflation estimates for 2012 increased only slightly to 3.6% (previous quarter: 3.5%). WES experts on average expect a slight increase in long-term interest rates over the next six months.
According to WES experts the euro is slightly over-valued and the yen is somewhat more so. On worldwide average economic experts expect the dollar exchange rate to rise over the next six months.
Hans-Werner Sinn, President of the Ifo Institute
Press release as PDF-file
World Economy (Index, new base year: 2005 = 100)
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Climate (2005=100)
Since 1981 the Ifo Institute has conducted a quarterly survey in numerous countries on business cycle developments and other economic factors in the experts’ home countries. The April 2012 survey received responses from 1,101 experts in 121 countries. The survey is conducted in co-operation with the International Chamber of Commerce in Paris (ICC).
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Ifo Economic Climate for the Euro Area (WES QIII/2012)09 August 201212:00 PM CEST
Ifo World Economic Climate (WES QIII/2012)16 August 201212:00 PM CEST
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