Ifo index for world economy cools down markedly in Q4

The Ifo Index for the world economy fell below its long-term average in the fourth quarter of 2015, the Munich-based think tank reported Thursday.

According to Ifo, the economic climate deteriorated in all regions except Oceania and the Commonwealth of Independent States (CIS), where the climate index stabilized at a low level. Its index indicator fell from 95.9 points last quarter to 89.6 points, well below its long-term average of 96.1 points.

"Assessments of the current economic situation deteriorated only marginally, but expectations are far less positive than last quarter," said Hans-Werner Sinn, president of the Ifo institute.

Ifo experts noted the most urgent economic problems were insufficient demand and a lack of confidence in government policies.

In addition, fewer experts expect long-term interest rates to increase over the next six months than last quarter, especially in the United States.

Ifo report notes that the U.S. dollar is still considered to be slightly overvalued and that the dollar is expected nevertheless to appreciate over the next six months on average.

Ifo institute has conducted a quarterly survey in numerous countries on business cycle developments and other economic factors since 1981. The results of this survey are based on responses of more than 1,000 experts from over 100 countries and regions. Endit