Poll reveals other interesting insights

n The euro was assessed as overvalued, while the US dollar was seen as undervalued n 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 US than in the euro area. n 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%). n No change in the inflation rate is expected in the US (2.2% in 2004 and 2003). n Bird flu has devastated Asia’s poultry industry, but the region’s overall economy appears not to have been otherwise noticeably affected, with domestic demand forecast to strengthen in almost all Asian countries. n Among the Asian countries surveyed by the ICC/Ifo Poll, India has become the “shining star” economically. n Confidence in economic recovery is returning in Western Europe. Though the current situation is not yet seen to be satisfactory, the survey’s assessments have followed a positive trend since July 2003. An improvement of the current economic state has been reported from all Western European countries, except Denmark.