Ifo World Economic Climate Cools Off

After a slight recovery in the first half year, the Ifo indicator for the world economy has fallen again and is now slightly below its long-term average. Whereas the situation assessments worsened over the previous quarter, the expectations remain positive. A decisive upturn in the global economy is not in sight. The economic climate worsened in nearly all regions. In Europe and North America, the indicator still remains at relatively high levels. However, in Asia and Africa it fell below the respective long-term averages. In the Middle East and Oceania, the indicator continued to deteriorate and is now at its lowest level in six years. In the CIS countries and Latin America, the descent of the indicator has at least been halted: The economic climate recovered slightly in both regions, although it is still regarded as “under cooled”.