Euro zone business confidence has dropped to a record low since 1993, the business climate index of the Munich-based Ifo Institute revealed on Wednesday.

The Ifo business climate index for the euro zone, based on a survey of 262 economists, was 50.9 in the fourth quarter, down from 61.9 in the third quarter, while it was 90.7 for the same period last year.

This is the fifth consecutive drop for the index, which reflects the deteriorating economic condition in the region.

"This analysis suggests that the slowdown in the economy of the euro zone will continue. Interest rates will fall over the next six months," an Ifo press release said.

The economic situation has worsened in Italy, Belgium, France, Austria and Germany, and prospects was especially dim for Spain and Ireland, according to the institute.

(Xinhua News Agency November 13, 2008)