[221111.EN.BIZ] Economy To Deteriorate, Say 1,119 Economists Surveyed In 119 Countries

WORLD economic trends, particularly in the Europe, point to a recessionary slide in coming months, according a survey of 1,119 economic specialists from business and academic institutions in 119 countries conducted by the International Chamber of Commerce and Munich's Institute for Economic Research.

Respondents noted the world economic climate index tumbled to 78.7, a two-year low, from the year's high of 107.7 in the second quarter, reported Newark's Journal of Commerce. Their expectations fell to 71.9 from a first quarter high of 110.5. Assessments of the current economic situation fell to 86.0 from a high of 108.4 in the second quarter.

"Results demonstrate the fragile state of the financial sector, particularly in public finance, and underscore the threat that the still relatively strong real economies of many countries could slide into recession," said the chamber secretary general Jean-Guy Carrier.

The Asian economic climate also worsened and is now below its long-term average. Expectations for the next six months continued to worsen in the region. And in western Europe, a significantly more negative outlook was also brought on by a worsening economic climate. In North America, expectations remained positive, but less confident, said the report.

Respondents said the euro and the yen are overvalued. On a worldwide average, the dollar's exchange rate was expected to remain largely stable over the next six months.

Source : HKSG, 22.11.11.