German Ifo Institute World Climate Index Falls Over Escalated Trade Tensions

Posted Monday, August 12, 2019 by
Arslan Butt • 1 min read

According to the German Ifo institute, the escalating trade war has dented the global economic outlook. The ifo World Economic Climate indicator has declined to -10.1 in Q3 2019 from -2.4 previously.

As the trade war between US and China continues to simmer, the world economy – both developed and emerging, are bearing the brunt and are expecting world trade’s growth to weaken. Almost 1,200 experts from over 110 countries participated in this survey which reveals that trade expectations have touched their lowest levels.

Participants also expect private consumption, investment and interest rates – both long-term and short-term, to fall further in the coming months over heightened trade tensions. Add to that Trump’s latest comments that he was “not ready” for a trade deal with China just yet, and the horizon looks even bleaker.

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