Ifo World Economic Climate Remains Clouded Over

The indicator for the Ifo World Economic Climate dipped again slightly in the fourth quarter. More unfavourable assessments of the current economic situation, as well as downwardly revised expectations for the next six-months are responsible for the deterioration. The most serious economic problem is currently cited as lacklustre demand. The world economy is treading water. Inflation expectations for 2012 increased slightly to 3.6% on global average. Survey participants on average expect short-term interest rates to remain largely unchanged over the next six months. In their opinion the long-term interest rates are set to increase slightly at most. Economic experts hardly expect the US dollar to appreciate in value on global average over the next six months.