Confidence in global economy slumps: World Economic Forum

Confidence in the world economy has fallen sharply in the last three months,  according to a World Economic Forum poll released Wednesday.

The Global Confidence Index showed that slowing growth in the U.S. and China and the lingering euro-zone crisis did away with the “relative optimism” of the precious quarter, prompting 72% of respondents to say they were not confident about the state of the global economy over the next 12 months.  That’s up from 37% in the previous quarter.

Lee Howell, managing director at the World Economic Forum, said that low confidence levels were due to the instability that still persists throughout the global economy. “Despite every effort to ensure economic, social and political stability, we are still just one shock away from everything getting off track again – which points to the need for greater resilience globally,” he said in a statement.

The index polled 430 experts, who presented a “markedly more negative outlook in the third quarter of the year. Sixty-eight percent of those polled fear a major economic disruption over the next 12 months, up from 46% from the previous quarter, while 53% feared a major societal disruption.

Some 61% of those surveyed were not confident in global governance, and 48% lacked confidence in global cooperation.

The quarterly survey began last year.

Source:  MarketWatch

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