Ifo World Economic Climate Continues to Cloud Over – Results of the 131st World Economic Survey (WES) for the first quarter of 2016

The Ifo Indicator for the World Economy dropped from 89.6 points to 87.8 points and moved further away from its long-term average. Although assessments of the current economic situation brightened marginally, the economic outlook, by contrast, is less positive than last quarter. The steep decline in oil prices does not seem to be having any positive economic effect. Growth in the world economy continues to lack impetus. With the exception of Europe, the indicator is below its respective long-term average in all regions. The climate in the CIS states and the Near East clouded over, which was primarily due to more negative economic expectations. In Europe WES experts are slightly less positive about future developments than they were in October 2015. For 2016 WES experts expect a price increase of 3.2 percent on worldwide average, following an inflation rate of 3.0% last year. The inflation expectations for the euro area are 1.0% for 2016; and are therefore just half a percentage point higher than the inflation rate reported for 2015.