IFO: World Economic Survey says climate cools down

After recovering somewhat in the first half of the year, the Ifo Index for the world economy fell, according to the World Economic Survey (WES) of the third quarter 2015.

The indicator’s present level of 95.9 points is now slightly below its long-term average of 96.1 points, the Munich-based research institute said.
While assessments of the current economic situation deteriorated compared to last quarter, expectations remained positive. There was still no major upswing in the world economy in the third quarter.
The economic climate deteriorated in nearly all regions. Nonetheless, the indicator in Europe and North America still remained at a relatively high level, while it sank below its long-term average in Asia and Africa. The index continued to fall in the Middle East and Oceania, dropping to its lowest level in six years.
In the CIS states and Latin America, however, the indicator’s descent ground to a halt, with a slight recovery seen in both regions, although the climate remains very undercooled. While less favourable assessments of the current economic situation led to a clouding over of the economic climate in North America, Oceania, Asia and the Middle East, the deterioration in Europe and Africa was due to less positive economic expectations.
Long-term interest rates are largely expected to grow over the next six months, especially in the USA. Even if the US dollar is still considered to be slightly overvalued, more WES experts than in the previous survey expect it to appreciate over the next six months.