The outlook for the global economy continues to deteriorate. The Ifo World Economic Climate has fallen to its lowest level since spring 2009. At that time, the financial crisis plunged the global economy into turmoil. The index, calculated by the Ifo Institute in Munich, fell in the fourth quarter from minus 10.1 points to minus 18.8 points. Both the assessment and the expectations dropped significantly.
Once again clouding of the ifo world economic climate - The global economy continues to cool down #WES #WorldEconomicSurvey https://t.co/D254nI4s19 pic.twitter.com/OyZ9imgLOK
- Ifo Institute (@ifo_Institute) November 11, 2019"The global economy continues to cool," said Ifo President Clemens Fuest. The economic climate is deteriorating in almost all the regions considered. Reason are trade conflicts and risks such as Brexit. "In emerging markets, the downside comes mainly from Asia, in the advanced economies mainly from the US," Fuest said.
The 1230 experts surveyed from 117 countries expect significantly weaker growth in world trade, weaker private consumption and lower investment activity. Compared to spring, significantly more experts rated aggregate demand and innovation activity as inadequate.