RTTNews - The Ifo World Economic Climate index for the Eurozone increased further to 63.6 in the third quarter from 55.1 in the previous quarter, a report by the Ifo Institute for Economic Research and the Paris-based International Chamber of Commerce said on Wednesday. The indicator rose for the second quarter in a row.

The improvement in the Ifo indicator was an outcome of more favorable expectations for the coming six months, the report said.

The economic expectations index rose to 93 in the third quarter from 76 in the preceding three months. However, the assessments of the current economic situation decreased to 28 from 29.9.

Under the survey, inflation expectations for 2009 stood at 0.7% on average, clearly below the European Central Bank target. The ECB aims at inflation rates below, but close to 2% over the medium term.

Further, experts considered major world currencies, U.S. dollar, British pound and the Japanese yen, to be slightly undervalued vis-à-vis the euro. However, they do not expect the U.S. dollar to appreciate over the euro in the coming six months, the report said.

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