Results of the Ifo World Economic Survey (WES) of 1st quarter 2017 (13 February 2017)
Ifo World Economic Climate Continues to Brighten
The Ifo World Economic climate continued to improve this quarter. The indicator rose to +2.6 balance points from -1.2 points previously. Experts’ assessments of the current economic situation were no longer quite as unfavourable as last quarter. Expectations also brightened somewhat, pointing to a moderate recovery in the world economy.
The Ifo economic climate primarily improved in advanced economies. The mood in Japan in particular brightened considerably. The economic climate also improved in Britain, although the majority of experts surveyed remains pessimistic. The economic climate for emerging markets and developing economies remained unfavourable. Sentiment in the Middle East and North Africa, Sub-Saharan Africa and CIS countries firmed, but remains weak. In Turkey, by contrast, the indicator plunged.
Average short and long-term interest rates worldwide are expected to rise over the next six months. In the USA, even all of the experts surveyed expect the short-term interest rates to rise. The US dollar will continue to strengthen over the next six months.
President of the Ifo Institute
World Economy (Balances)
Since 1981 the Ifo Institute has conducted a quarterly survey in numerous countries on business cycle developments and other economic factors in the experts’ home countries. The January 2017 survey received responses from 1,147 experts in 118 countries. A detailed regional analysis appears in the quarterly journal: CESifo World Economic Survey. This press release contains advance information on the most important results.