The world economy. During the period under review, the world economy moved ahead with the recovery which had commenced towards the end of 2005 following a weak period experienced since the beginning of 2004. The “ifo” indicator for the economic climate in the euro-zone rose significantly at the start of 2006, continuing its upward trend seen since the middle of last year. In Asia and North America, too, the economy is visibly improving, and the economic upturn in Germany has continued to stabilize.

Sector performance: retail and banking. Within the banking business, continuing competitive pressure remains the key driver behind actions to reduce cost and boost efficiency. Banks are continuing their growth efforts by deploying the latest information technology and expanding their services to the customer.

The international retail groups are consistently tapping new growth potential by means of foreign expansion, in particular in Asia and eastern Europe.