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Trends ECONOMIC SURVEY INTERNATIONAL tations of slowing economic growth in the United States and higher interest rates. EUROPEAN FUNDAMENTALS INCREASINGLY SOUND Economic prospects for Germany are very favourable. The upswing is still fuelled by strong export activity, but domestic demand has also picked up. The planned tax cuts are likely to boost economic activity in the coming six months. Tax relief is also planned in France and Italy. In France, the economic outlook remains very bright, and there are no signs of inflationary pressure. Robust export activity, strong private consumption and healthy capital spending support growth. In Italy, growth is based on exports and investment, whereas private consumption is still unsatisfactory. It should benefit from the tax cuts. In the United Kingdom prospects remain favourable but survey results point to a slowdown in the second half of the year, mainly due to the strong pound sterling which is affecting exports. The trade deficit is expected to widen. In April 2000, 652 economic experts in 80 countries were polled by the Ifo Institute’s 68th Economic Survey International. The world economy is expected to continue expanding, albeit at a somewhat slower pace than in past months. In April, the world economic climate remained at the all-time high reached at the beginning of the year, but assessments of future economic activity weakened. In Western Europe, the upswing is likely to persist because of sound fundamentals. The weak euro and an easing of fiscal policy in some countries should prolong the expansion in the euro area. The economic climate improved, although assessments of future economic activity worsened due to expec- Present and Expected Economic Situation Source: ESI 68, 2/2000. 53 CESifo Forum