Germany’s IFO: Global economic outlook darkens amid escalating trade dispute

The latest quarterly survey among nearly 1,200 experts in more than 110 countries, conducted by Germany’s IFO economic institute showed on Monday that the global economic outlook has deteriorated over the summer due to an escalating US-China trade spat, as cited by Reuters.

IFO President Clemens Fuest said: “The experts expect significantly weaker growth in world trade,” 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 noted.

Amid a broad-based US dollar rebound, the EUR/USD pair is seeing fresh declines to four-day lows of 1.1170. The Italian political risks combined with deteriorating global growth outlook remain a weigh on the shared currency.