"Experts' assessments of the current economic situation remain unfavorable, while their economic expectations are far more negative than last quarter. Sentiment in the world economy is subdued," Ifo President Clemens Fuest said in the latest report.
The research center interviewed 1,086 economic experts in 115 countries for the latest July 2016 survey which asked respondents to rate the current world economic climate, situation and expectations for the global economy. The survey was started 1981 and provides a global barometer of economic sentiment.
According to the report, the last quarter's upward trend ground to a halt in nearly all regions as concerns over the U.K.'s vote to leave the European Union (EU) and economic slowdown in Asia weighed on sentiment.
"In Europe in particular the economic climate clouded over in the wake of the Brexit vote. The only exceptions to this rule were the Eastern European EU countries, where the climate brightened. Meanwhile in Asia the climate indicator fell to its lowest level in seven years and in North America the index was only slightly higher than its long-term average," Ifo said.
There was, however, an improvement to the economic climate in Latin America and the CIS states (former Soviet countries), although the index rose from a very low previous level.
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