New surveys show economic outlook at worst for two years

Ben Southwood
Follow Ben
THE WORLD economic climate deteriorated dramatically in the third quarter of the year, according to a survey released jointly by a think-tank and a business group.

The current economic situation was rated as the worst for over two years, while the indicator for economic climate dropped off a cliff, the survey from the Institute for Economic Research (IFO) and the International Chambers of Commerce (ICC) said. Respondents’ expectations for the next six months also worsened significantly.

Perhaps surprisingly, western European respondents were most positive about the economic climate, with an index of 89.3, compared to 81.2 and 83.3 in the relatively healthier North America and Asia. But all three indices remain under 2005’s level of 100, underlining the ongoing slump.