Evo: The world economy is deteriorating
15:45 - 12/08/2019
Information / Baghdad ..
Economic prospects around the world have deteriorated as the trade dispute between the United States and China escalates, according to a survey released on Monday.
The German Ifo economic institute said its quarterly survey of some 1,200 experts in more than 110 countries showed its measures of current conditions and economic outlook deteriorated in the third quarter.
"Experts expect much weaker growth for world trade," said Clemens Fust, head of the institute, adding that trade expectations were at their lowest since the start of the tariff dispute last year.
“Participants also expect greater weakness in private consumption, a larger reduction in investment activities and a decline in short and long-term interest rates,” he said.
US President Donald Trump said on Friday he was not prepared to conclude a trade deal with China that he even questioned a round of talks in September, stoking new fears in financial markets that the dispute will not end soon.
The United States and China are important export destinations for German manufacturers, so the dispute, which saw the world's two largest economies impose reciprocal tariffs, has had a major impact on German producers.
The German economy, Europe's largest, is widely expected to contract in the second quarter and sentiment indicators suggest the situation will not improve much in the third quarter.
The German Federal Statistical Office is due to release preliminary GDP data from April to June on Wednesday.
A Reuters poll of analysts expected the data to show a 0.1 percent contraction from the same quarter last year. Done / 25