The IFO Institute for Economic Research in Germany says the economic outlook has deteriorated worldwide due to the escalating trade dispute between the United States and China.
This is according to the economic institute’s quarterly survey among nearly 1,200 experts in more than 110 countries which showed that measures for current conditions and economic expectations have both worsened in the third quarter.
“The experts expect significantly weaker growth in world trade,” Ifo President Clemens Fuest said, adding that trade expectations hit the lowest since the beginning of the tariff conflict last year.
“Respondents also expect weaker private consumption, lower investment activity, and declining short- and long-term interest rates,” Fuest added.
It would be recalled that the U.S. President, Donald Trump said on Friday he was not ready to make a trade deal with China raising fresh doubts in financial markets that the dispute is unlikely to end anytime soon.