ifo World Economic Climate Clouds Over Again
The ifo World Economic Climate has worsened again, with the indicator falling in the fourth quarter from −10.1 to −18.8 points. Both the assessment of the current situation and expectations dropped significantly as the global economy continues to cool.
There was a deterioration of the economic climate in nearly all regions. Assessments of the current situation were unfavorable particularly in emerging markets, while in advanced economies it was primarily estimates for the coming months that declined. In emerging markets, the downward trend was based mostly in Asia; in advanced economies, it was concentrated in the US.
The experts expect significantly weaker growth in world trade, weaker private consumption, and lower investment activity. Compared to spring of this year, there was a marked increase in the proportion of experts who rate macroeconomic demand and innovation as insufficient.
Prof. Dr. Dr. h.c. Clemens Fuest
President of the ifo Institute
