Global economic climate "clouded over": German economic institute

Source: Xinhua| 2019-08-12 23:05:32|Editor: yan
Video PlayerClose

BERLIN, Aug. 12 (Xinhua) -- The world economic climate "has clouded over," Germany's Institute for Economic Research (Ifo) announced on Monday.

The Ifo barometer fell by 7.7 points to minus 10.1 points, according to the Munich-based institute, based on its quarterly survey of around 1.200 experts from 116 countries.

"The intensification of the trade conflict is having a considerable impact on the global economy," said Ifo President Clemens Fuest.

The experts assessed the current economic situation more negatively than at the beginning of 2017 and had lowered their expectations for the coming six months, according to Ifo.

The economic climate had deteriorated in all regions of the world and experts had revised both the assessment of the situation and expectations downwards for the advanced economies and the Asian emerging and developing economies, the German economic research institute noted.

In Latin America, the Commonwealth of Independent States and the Middle East and North Africa, only the assessment was less favorable while estimates for the months ahead remained broadly unchanged.

"Experts expect significantly weaker growth in world trade. Trade expectations are at their lowest level since the outbreak of the trade conflict last year," stated Fuest.

Respondents to the German institute's quarterly survey also expected "weaker private consumption, lower investment activity and declining short-term and long-term interest rates".

The International Monetary Fund (IMF) had lowered its growth forecasts for the global economy three times this year, most recently in July from 3.3 to 3.2 percent. In 2018, the global economy had grown by 3.6 percent.

The IMF had stressed that it was an "urgent necessity" to rapidly reduce tensions in the areas of trade and technology.

Uncertainty about future trade relations between Britain and the European Union should also be cleared as soon as possible as a disorderly Brexit could "weigh" on the world economy, according to the IMF.