Cesifo Group Economic Forecast, Nov. 2007: "...The Ifo World Economic Climate has worsened clearly in the fourth quarter of 2007. Both the assessments of the current economic situation as well as the six-months expec-tations have been revised downwards. The worsening in the Ifo World Economic Climate affected all three major economic regions: Western Europe, North America and Asia. The strongest decline in the climate indicator oc-curred in North America, especially in the United States. In Western Europe the Ifo climate indi-cator also fell. In nearly all countries of the region, the economic expectations point to an eco-nomic slowdown in the coming six months. The current economic situation, however, is still as-sessed positively, with the exceptions of Portugal and France, albeit somewhat less favourable than in the previous quarter. In Asia the climate indicator deteriorated only slightly. In the two largest economies of the region, China and Japan, both the assessments of the current situation and the six-month economic expectations have worsened somewhat. Inflation expectations for 2007 have remained largely stable in the US at 2.8% and in West-ern Europe at 2.1%. In Asia they have fallen slightly to 2.4% compared with 2.7% in July. Fewer WES experts than in the previous survey expect increasing central bank and financial market rates. ..."
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