Global Economic Prospects, January 2012 : Uncertainties and Vulnerabilities

The world economy has entered a dangerous period. Some of the financial turmoil in Europe has spread to developing and other high-income countries, which until earlier had been unaffected. This contagion has pushed up borrowing costs in many parts of the world, and pushed down stock markets, while capital flows to developing countries have fallen sharply. Europe appears to have entered recession. At the same time, growth in several major developing countries (Brazil, India and, to a lesser extent, Russia, South Africa and Turkey) is significantly slower than it was earlier in the recovery, mainly reflecting policy tightening initiated in late 2010 and early 2011 in order to combat rising inflationary pressures. As a result, and despite a strengthening of activity in the United States and Japan, global growth and world trade have slowed sharply.

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Bibliographic Details
Main Author: World Bank
Format: Working Paper biblioteca
Language:en_US
Published: Washington, DC 2012-01
Subjects:access to bond markets, accounting, asset base, asset prices, bailout, balance of payments, bank activity, bank assets, bank balance sheets, Bank Debt, bank lending, bank loans, Banking Assets, banking crises, banking sector, banking sectors, banking system, banking systems, basis point, basis points, binding constraint, bond auctions, Bond Bank, bond funds, bond indexes, bond issuances, bond issuer, bond sales, bond spreads, Bond yields, bonds, borrowing costs, business cycle, capital adequacy, capital flow, Capital flows, capital markets, capital outflows, capital requirements, capital stock, CDS, Central Bank, central banks, collateral, commercial banks, Commodities, commodity, commodity exports, commodity price, Commodity Prices, consumer durables, contingency planning, Copyright Clearance, Copyright Clearance Center, corporate bond, corporate bond issuance, country debt, credit default, credit default swap, credit default swaps, credit histories, credit squeeze, credit squeezes, creditors, cross-border flows, currency depreciations, currency risk, Current Account Deficit, current account deficits, debt crisis, debt flows, debt holdings, debt issues, debt levels, debt ratios, Debt Repayment, debts, defaults, deficits, deposit, depositors, deposits, developing countries, Developing country, developing­country, domestic bank, domestic banking, domestic banks, domestic bond, domestic bond markets, Domestic bonds, downside scenario, downside scenarios, economic developments, emerging market, emerging market equities, Emerging Markets, emerging-market, enforcement mechanisms, equity flows, equity funds, equity issuance, equity markets, equity values, exchange rate, Exchange Rates, expenditure, expenditures, export growth, exporters, exposure, external debt, finances, financial crises, financial crisis, Financial flows, financial institutions, financial markets, Financial Stability, financial stress, financial support, financial systems, financing requirements, fiscal deficits, fixed investment, food prices, foreign banks, foreign capital, foreign currency, foreign holdings, foreign investment, foreign investor, Global Economic Prospects, Global Economy, global financial markets, global markets, global trade, government bonds, government deficit, government deficits, government financing, government revenues, growth rates, holding, holdings, host countries, Income, incomes, Inflation, inflation rate, inflationary pressures, insurance, interest rate, interest rates, International Bank, international bond, International capital, International capital flows, international financial market, International Trade, investment vehicles, liquidity, loan, loan exposures, loan portfolios, local currency, local government, local markets, local stock markets, long term debt, long-term debt, long-term yields, loss of confidence, mark-to-market, market competition, market conditions, market confidence, market equity, market participants, market price, market prices, market value, middle-income countries, monetary policy, Net debt, non-performing loan, nonperforming loans, oil price, oil prices, output, pension, pension system, policy response, political uncertainty, portfolio, power parity, private banks, private capital, private capital inflows, Private creditors, private debt, prudential regulation, purchasing power, remittance, remittances, reserves, return, risk aversion, safety net, secondary bond markets, short-term bonds, short-term debt, short-term finance, Short-term yields, social safety net, solvency, sovereign bond, sovereign debt, sovereign yields, stock markets, sustainable growth, swap, tax, trade finance, trade sectors, trading, tranche, transition countries, valuations, wholesale funding, world economy, world trade,
Online Access:http://hdl.handle.net/10986/12105
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Summary:The world economy has entered a dangerous period. Some of the financial turmoil in Europe has spread to developing and other high-income countries, which until earlier had been unaffected. This contagion has pushed up borrowing costs in many parts of the world, and pushed down stock markets, while capital flows to developing countries have fallen sharply. Europe appears to have entered recession. At the same time, growth in several major developing countries (Brazil, India and, to a lesser extent, Russia, South Africa and Turkey) is significantly slower than it was earlier in the recovery, mainly reflecting policy tightening initiated in late 2010 and early 2011 in order to combat rising inflationary pressures. As a result, and despite a strengthening of activity in the United States and Japan, global growth and world trade have slowed sharply.