Global economy is cooling off

The global economic climate index has fallen to a 10-year low according to the Ifo, a German economic research institute.

Weltkonjunktur kühlt sich weiter ab

Frankfurt (dpa) - The outlook for the global economy is getting bleaker, with a leading German research institute saying on Monday that its quarterly World Economic Climate index had fallen to its lowest point in more than a decade.

The Ifo institute's index decreased from −10.1 to −18.8 points in the fourth quarter, the Munich-based institution said - its lowest point since the second quarter of 2009, when it had reached -35.8 points.

Both the assessment of the current situation and expectations for the future dropped significantly, according to Ifo.

"The global economy continues to cool," Ifo president Clemens Fuest said in a statement, noting that the economic climate deteriorated in "nearly all regions."

"In emerging markets, the downward trend was based mostly in Asia; in advanced economies, it was concentrated in the United States," he said.

The 1,230 experts from 117 countries who were surveyed for the index in October expect "significantly weaker growth in world trade, weaker private consumption and lower investment activity," according to Fuest.

Many more experts also rated macroeconomic demand innovation as "insufficient" compared to earlier this year.