IFO-economic climate: economy in the euro area to cool down

The 34; economic climate Index 34; of the Ifo Institute for the euro area has dropped significantly. Expectations have also been adjusted downwards in Germany.

IFO-economic climate: economy in the euro area to cool down

According to economic climate index of Munich Ifo Institute, experts expect economy in euro area to weakens in near future. The corresponding barometer fell 11.5 points to 19.6 points, as Munich Ifo Institute has given to its quarterly survey of 367 experts. While current situation was assessed only etwasschlechter, Erwartungendeutlichs tarnished and fell to lowest value since end of 2012.

This pointed out that economic situation in euro area could weaken, said IFO president Clemens Fuest. For first time since end of 2012, experts expect stagnating investments in eurozone. As a reason, Fuest called trade conflict with USA: "The current customs and Protektionismusdebatte led to a significant deterioration in export expectations."

The economic climate worsened in five größtenVolkswirtschaften of currency area. However, dasAusmaß varies depending on slowdown: "In Germany, Italy Nerlands, experts in particular corrected ihreErwartungen strongly," said Fuest. The current situation will be well abersowohl in Germany as well as in Nerlands Weiterhinsehr. In France and Spain, Verbleibeder position indicator is also positive, while in Italy it is negative.

In trade conflict, United States and EU agreed in principle to not impose any additional duties, but to reduce existing tariffs. Wher and how soon this intention is implemented is still unclear. It may also help to relax fact that EU is increasingly importing soy from US. China, however, threatened US president Donald Trump with additional duties.

Date Of Update: 03 August 2018, 12:00

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