World economy: Climate indicator stabilizes at a high level

In July 2004 the Ifo Institute conducted its 85th World Economic Survey (WES) among 1,200 economic experts of multinational enterprises and institutions in 89 countries. According to the results of the survey, world economic activity remains favourable. The WES indicator for the world economic climate is somewhat lower than in the preceding April survey but is clearly above its long-term average. Moreover, assessments on the current situation have again improved although the expectations for the next six months have weakened somewhat. In particular the only slight decline of economic expectations and the high level of the indicator as a whole speak for a positive development of world economic activity in the second half of 2004.