ifo World Economic Climate Deteriorates
The ifo World Economic Climate has clouded over. The indicator fell from −2.4 to −10.1 points in the third quarter. Both the assessment of the current situation and expectations dropped significantly. The intensification of the trade conflict is having a considerable detrimental effect on the world economy.
The economic climate deteriorated in all regions. In the advanced economies and in Asia’s emerging and developing economies, experts have revised both their assessment of the situation and expectations downwards. By contrast, in Latin America, the Commonwealth of Independent States, and the Middle East and North Africa, only the assessment of the situation was more negative, while estimates for the months ahead remained broadly unchanged.
The experts expect significantly weaker growth in world trade. Trade expectations are at their lowest level since the outbreak of the trade conflict last year. Respondents also expect weaker private consumption, lower investment activity, and declining short- and long-term interest rates.
Prof. Dr. Dr. h.c. Clemens Fuest
President of the ifo Institute
