Skeptical View of Economic Policy in Europe and South America

In a global comparison, the experts’ assessments of current economic policy differ significantly. In Europe, with the exception of Western Europe, economic policy is assessed more critically than in the 4th quarter of 2022. This contrasts with the positive assessment of economic policy in Asia, Africa, and America. The only exceptions are the countries in South America, whose experts are the most critical globally.

Optimism about the Suitability of Economic Policy for Future Challenges outside Europe

The assessment of economic policy is made up in equal parts of the experts’ assessments of current economic policy and the assessment of economic policy with regard to future challenges. In each case, the experts were asked to rate economic policy compared with the previous quarter.

Experts in many parts of Europe view current economic policy critically. The participants are even more concerned about future challenges. Here, the regions in Europe recorded a decline in the assessment across the board. In large parts of Europe, economic policy is not seen as capable of meeting future challenges. Only in Western Europe do the experts rate current economic policy as slightly better than in the previous quarter.

Heterogeneous Assessment of the Political Situation

Overall, the experts assess the political climate as better than in the previous quarter. In particular, the assessments from West Africa, Southeast Asia, and Oceania have improved compared with the previous quarter, and the same applies to a lesser extent to assessments from countries in North and Central America, North and East Africa, and West, South, and East Asia. In Europe, by contrast, the outlook has deteriorated since the last quarter, with the exception of Northern Europe. Experts in Central and Southern Africa and in South America are also more pessimistic in their assessment of the political situation.

Government Performance Particularly Criticized in Europe, Political Stability Further Improved

The assessment of the political situation is made up in equal parts of the experts’ assessments of government performance and political stability. While political stability continues to be perceived as improved compared with the previous quarter, the assessments of government performance are critical overall.
In particular, the experts gave the governments in South America a significantly poorer rating than in the previous quarter. Governments in Southern and Central Africa are viewed very skeptically as well, and experts in Central Asia are also not convinced. In all parts of Europe, approval for government work is down compared with the 4th quarter of 2022. With the exception of Southern Europe, ex-perts are positive about the development of political stability compared with the previous quarter. The largest increases are seen in West Africa, East Africa, and Oceania.