Slight cooling of the world economic climate – results of the 93rd World Economic Survey (WES) July 2006

The Ifo indicator for the world economic climate fell slightly in the third quarter of 2006. The drop was solely due to less confident expectations for the next six months. The appraisals of the general economic situation improved again. This constellation indicates a somewhat less pronounced continuation of the economic upswing in the coming months. The inflation expectations for 2006 increased 3.5% on a world-wide average. The US dollar is regarded as slightly overvalued along with the euro and the British pound. Only the Japanese yen is seen as undervalued.