Global Economic Prospects, January 2013

World Bank

No 12123 in World Bank Publications - Books from The World Bank Group

Abstract: More than four years after the global financial crisis hit, high-income countries struggle to restructure their economies and regain fiscal sustainability. Developing countries, where growth is 1-2 percentage points below what it was during the pre-crisis period, have been affected by the weakness in high-income countries. To regain pre-crisis growth rates, they will need to focus on productivity-enhancing domestic policies rather than demand stimulus. Although the major risks to the global economy are similar to those of a year ago, the likelihood that they will materialize has diminished, as has the magnitude of estimated impacts should these events occur. Major downside risks include the loss of access to capital markets by vulnerable Euro Area countries, lack of agreement on U.S. fiscal policy and the debt ceiling, and commodity price shocks. In an environment of slow growth and continued volatility, a steady hand is required in developing countries to avoid pro-cyclical policy and to rebuild macroeconomic buffers so that authorities can react in the case of new external or domestic shocks.

Keywords: Private; Sector; Development-Emerging; Markets; Finance; and; Financial; Sector; Development-Currencies; and; Exchange; Rates; Macroeconomics; and; Economic; Growth-Economic; Theory; &; Research; Finance; and; Financial; Sector; Development-Debt; Markets; Finance; and; Financial; Sector; Development-Banks; &; Banking; Reform (search for similar items in EconPapers)
Date: 2013
ISBN: 978-0-8213-9882-1
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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