The latest ICC-Ifo
World Economic Survey (WES) shows a climate indicator of 94.1 for the first
quarter of 2013, up from 82.4 at the end of 2012 after two quarters of decline.
The new global rise was driven by a significant increase in experts’ optimism
for the six-month economic outlook. Meanwhile, assessments of the current
economic situation improved only slightly.
ICC Secretary General
Jean-Guy Carrier was encouraged by the survey results, but remained cautious.
He said: “While the
signs of a renewed economic optimism are a boost to confidence, fresh
approaches by government and business are still urgently needed to drive economic growth.”
Ifo said positive
business data from China and the US, after the first fiscal cliff had been averted,
had helped lift the gloom. Another comfort was European Central Bank President
Mario Draghi’s pledge last year to do "whatever it takes" to protect
the eurozone from collapse.
improvement in economic climate was seen in Asia, where the ICC-Ifo economic
climate indicator rose above its long-term average. Since the end of 2012, experts
have become more upbeat about Asia’s economic situation and expectations have
indicator for North America rose too, mainly due to the view that the current
economic situation had improved, although it was still “not completely
Euro zone’s glimmer of hope
President of the Ifo institute, said: “Assessments of the euro zone’s six-month
economic outlook are now at their most positive for nearly two years which
signals a glimmer of hope for the euro area’s economic situation.”
Overall, the survey
showed the economic climate in Western euro areas to be poor but improving.
This is mainly because of significantly brighter six-month expectations – in all
euro countries apart from Estonia.
Survey respondents described
the economies of Greece, Italy, Portugal, Spain and Cyprus as “ailing”, only slightly
behind their euro neighbours. Only Germany and Estonia received positive
The World Economic
Survey’s 1,169 economic experts in 124 countries were also quizzed on
inflation. This gave a global average
inflation estimate of 3.3% for 2013, down from 3.6% last year. Estimates for
the euro area fell to 2.1% for 2013, from 2.4% last year. Short-term interest
rates, set by central banks, are expected to remain largely unchanged over the
next six months. And long-term interest rates, those affected mainly by the
capital market, look set to rise only slightly.
expect the value of the US dollar to grow moderately over the next six months and
the euro/US dollar exchange rate to remain stable.
Spotlight on SMEs
An ICC special
question included in the survey revealed a broad worldwide consensus on the
economic importance of small- and medium-sized enterprises (SMEs). Support was
particularly strong in Europe where, according to the European Commission, SMEs
provide two thirds of private sector jobs and account for 99% of all European business.
Nearly all WES experts surveyed in Western Europe see a substantial and healthy
SME sector as “essential for the national economy”.
Economic experts were
also asked if SMEs’ access to bank credit had been troubled by the global
financial crisis. The answer was primarily yes in North America, Eastern and
Western Europe, Oceania and the Commonwealth
of Independent States. Meanwhile, in areas less directly affected by the
crisis – Asia, Latin America, Africa and the Near East –SMEs had faced some
difficulty in obtaining bank credit, but the problem was less pronounced.
pointed out that the short supply of bank credit, mainly in Europe, was a heavy
constraint not just for SMEs, but for entire economies, particularly Italy, the
UK, Hungary, Albania, Slovenia, Portugal, Ireland, Romania, Spain and Greece.
copies of the ICC/Ifo World Economic Survey
For more information
visit the Munich-based economic research institute Ifo