Survey shows deteriorating global economic climate

By Amy Su  /  Staff reporter

Fri, Aug 17, 2012 - Page 13

After two straight quarters of increases, the world economic climate indicator fell this quarter as the global recovery suffered a setback, the Council for Economic Planning and Development said yesterday, citing the latest World Economic Survey by the Munich-based Ifo research institute.

The German institute’s quarterly survey, which polled 1,079 experts from 123 economies last month, showed its world economic climate indicator — which included respondents’ assessments of the current economic situation and the economic outlook in the next six months — falling sharply to 85.1 points in the third quarter, from 95 in the previous quarter.

The decline ended two consecutive quarters of increases and was lower than the world economic climate indicator’s long-term average of 96.7 points, the Ifo survey showed.

“The decline in the [world economic] climate was mainly due to respondents’ pessimistic view on current economic conditions,” council analyst Hsu Chih-hung (徐志宏) told a media briefing.

The sub-index on assessments of the current economic situation slid to 78.5 points this quarter, from 87.9 in the previous quarter, marking the lowest level since the first quarter of 2010, the survey showed.

In addition, fewer respondents were upbeat about the economic outlook in the next six months, with the sub-index dropping to 91.2 points this quarter, from 101.8 in the previous quarter, statistics showed.

As for Taiwan, most respondents gave “bearish” assessments of the nation’s overall economy, capital expenditure and private consumption, but expected overall sentiment to rebound in the near future, the report said.