The results of the latest ICC/Ifo World Economic Climate Survey have shown a worsening of economic sentiment over the second quarter of 2011.
The results, published yesterday in Munich, highlight a significant decline in business confidence about the current and future state of the global economy—in particular in Western Europe and North America.
Notably, inflation expectations worldwide have risen slightly over the last quarter. This year, a price increase on a worldwide average of 4.0% is expected by business leaders—albeit fewer now anticipate interest rate rises through to end-2011.
Following the publication of the survey results, Andrew Wilson, Director of Policy at ICC UK, said: “The decline in business confidence through Q2 is hardly a surprise given the current turbulence on global markets. The recent Global Trade Alert report shows that this comes at a time when more and more countries are taking steps to close their economies to international trade and investment. What’s clear is that new measures are needed to help boost business confidence and to keep markets open. This should be at the centre of the G-20 agenda in the months ahead.”
