Global economic confidence is at a ten-year high, according to the results of the latest ICC-Ifo World Economic Survey, with sustained growth expected in all regions of the world.

The overall economic climate indicator of the joint ICC/Ifo poll, released in February, hit 7.3 out of a possible 9 – its highest level since 1985, pointing to a pronounced upswing of the world economy.

Both North America and Asia registered the highest level of economic confidence in the history of the survey.

The poll surveyed over 1,000 economic experts in 92 countries. Jointly conducted by ICC and the Munich-based economic research institute, Ifo, the survey is the only one of its kind to give a global overview of business confidence.

The poll found that the favorable global conditions are also expected to have a beneficial effect on export/import performance worldwide and thus on world trade.

Other notable poll outcomes included:

• More than in the previous survey, the euro was assessed as overvalued. On the other hand, the U.S. dollar was seen by even more ICC/Ifo poll experts than in the previous two surveys as undervalued.

• More than in the previous survey, short-term interest rates are expected to start rising in the course of the next six months. Central-bank interest-rate hikes are still seen as more likely in the U.S. than in the euro area.

• Inflation is expected to rise, with an average 2.7% increase in consumer prices expected for the world economy in 2004 – slightly lower than the latest estimate for 2003 (2.9%) and much lower than the estimate at the beginning of last year (3.2%).

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