THE global economy has weakened slightly in the third quarter, mainly due to deceleration in Asia and Latin America, while North America shows signs of continuing recovery, according to a survey of more than 1,000 economists by the International Chamber of Commerce (ICC) and the Munich-based economic research institute Ifo.
The survey's index dropped to 94.1 from 96.8 in the second quarter.
The ICC urged G20 leaders to take pro-growth steps at the upcoming G20 Summit in St Petersburg, such as agreeing to push through a final agreement in trade facilitation at the World Trade Organisation by the end of the year. The economists indicated that the global recovery has stalled and that if business conditions in Asia worsen, world economic growth will slow more.
In Asia, the Ifo economic index fell below its long-term average after a temporary boost in optimism last quarter, the ICC said. Most of the concern centres on China, where growth is in the seven per cent range after years of double-digit and near-double-digit growth.
The ICC poll suggests that the European Union's economy is beginning to stabilise with help from the European Central Bank. Economic expectations have reached a three year high, boosting the area's economic confidence index to its highest level since late 2011. However, the overall economic climate is still below the long-term average.
ICC-Ifo survey respondents describe the economic situation as "poor" in France, Greece, Italy, Portugal, Spain and Cyprus. They are slightly more positive about Belgium, Ireland, Finland, the Netherlands and Slovenia. Germany and Estonia are the only economies to be scored as "satisfactory to good."
The survey indicated an expectation for inflation to increase at a 3.2-per cent rate, unchanged from the previous quarter. Survey participants expect the value of the US dollar to grow moderately during the next six months and to appreciate against the euro. The US economy grew 1.7 per cent in the second quarter, according to preliminary government estimates.
Last month, the International Monetary Fund estimated the global economy would increase by 3.1 per cent this year, down 0.2 per cent from its April forecast.
MARKETS
18 August 2013 - 19:50
Economists' survey shows weakening of global economy in third quarter
THE global economy has weakened slightly in the third quarter, mainly due to deceleration in Asia and Latin America, while North America shows signs of continuing recovery.
MARKETS
18 August 2013 - 19:50
Economists' survey shows weakening of global economy in third quarter
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