ifo World Economic Climate Recovers Slightly
by Hans Diederichs
The ifo World Economic Climate has recovered somewhat. In the second quarter, the indicator rose from -13.1 points to -2.4 points, having previously fallen four times in a row. Expectations for the coming months have brightened considerably. In contrast, the assessment of the current situation has deteriorated only slightly. This means the global economy should gradually strengthen again over the course of the year. The experts expect the global economy to grow by 3.4 percent this year.
The economic climate recovered in almost all regions of the world as economic expectations brightened. In most emerging and developing countries, the experts’ assessment of the current economic situation was better than it has been recently. This contrasts with a deterioration in the assessment of the current situation in advanced economies. Only in Latin America did the economic climate continue to deteriorate, with the assessment of the situation and the outlook for the coming months both less favourable.
Economic momentum in private consumption, investment, and world trade should recover slightly over the course of the year. Unlike three months ago, experts no longer expect interest rates to rise. Growing income inequality is the most frequently cited problem for the global economy.
Source: CESifo / Photo. Fotolia