The world economy. The ifo indicator monitoring the world‘s economic climate improved over the course of the first quarter of 2007, having shown signs of a slight weakening in the second half of 2006. The experts‘ overall assessment of the current economic situation is more favorable than in the last quarter; the same applies to their outlook for the next six months. This suggests that the world economy will remain buoyant during the first half of 2007.

Western Europe recorded a rise in its economic climate indicator. Within this context, Germany‘s current economic performance was again rated as particularly favorable. In the United States the positive assessment of the country‘s current economic performance is tarnished slightly by a more cautious outlook for the coming six months. The economic climate in Asia improved further during the period under review.

Developments in the retail banking and retail sectors. Against the backdrop of continuing competitive pressure, both the retail banking sector and the retail industry are focusing on the deployment of state-of-the-art information technology to rein back costs and improve efficiency levels. At the same time, companies are looking to extend their service portfolios by providing new self-service and automation solutions for their customers. Both sectors are continuing to expand their branch and store networks in high-growth regions around the globe.