Q4 ifo Index eurozone plummets
The ifo Index for the eurozone economic climate in the fourth quarter has dropped from 118,9 to 102.3 points compared to the previous quarter. The outlook for the coming six months dropped from 113.1 to 100 points.
According to the ifo Institute, both the assessment of the current state of the economy and the economic outlook for the coming six months deteriorated due to high unemployment, a lack of domestic demand and persistent budget deficits.
While the economic situation has deteriorated across almost all eurozone countries, the recent drop in German economic growth has been particularly severe. The ifo revised its 2014 GDP growth forecast for Germany from 1.3% to 1% earlier this week.
The ifo Index for Q4 is based on a survey among 288 economists across the eurozone.