Global Economic Prospects, January 2010 : Crisis, Finance, and Growth

The world economy is emerging from the throes of a historically deep and synchronized recession provoked by the bursting of a global financial bubble. The consequences of the initial bubble and the crisis have been felt in virtually every economy,...

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Main Author: World Bank
Format: Publication
Language:English
Published: World Bank 2012
Subjects:
IPO
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20100219002746
http://hdl.handle.net/10986/2415
id okr-10986-2415
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCESS TO CAPITAL
ASSET PRICE
BALANCE SHEETS
BANK CREDIT
BANK LENDING
BANKING MARKETS
BANKING SECTOR
BANKING SECTOR EFFICIENCY
BANKING SECTORS
BANKING SYSTEM
BASIS POINT
BASIS POINTS
BOND
BOND FLOWS
BOND INDEX
BOND MARKETS
BOOM-BUST CYCLE
BOOM-BUST CYCLES
BORROWERS
BORROWING COSTS
BORROWING REQUIREMENTS
BUDGET
BUDGET DEFICITS
CAPITAL ACCOUNT
CAPITAL ACCOUNT LIBERALIZATION
CAPITAL CONSTRAINT
CAPITAL FLOWS
CAPITAL INFLOWS
CAPITAL INVESTMENT
CAPITAL REQUIREMENTS
CAPITAL SHORTAGES
CENTRAL BANK
CENTRAL BANKS
COLLATERAL
COMMERCIAL BANK
COMMERCIAL BANKS
COMMODITY PRICE
COMMODITY PRICES
CONSUMER PRICE INDEX
COUNTRY RISK
CREDIT DEFAULT
CREDIT DEFAULT SWAPS
CREDIT EXPANSION
CREDIT GROWTH
CREDIT MARKETS
CREDIT PROVISION
CREDIT RATING
CROSS-BORDER FLOWS
CURRENCIES
CURRENT ACCOUNT DEFICIT
CURRENT ACCOUNT DEFICITS
CURRENT ACCOUNT SURPLUS
DEBT FINANCING
DEBT FLOWS
DEBT OBLIGATIONS
DEPOSIT
DEPOSIT MONEY BANKS
DERIVATIVE
DERIVATIVE TRANSACTIONS
DERIVATIVES
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DOMESTIC BANK
DOMESTIC BANKING
DOMESTIC BANKS
DOMESTIC BORROWING
DOMESTIC CREDIT
DOMESTIC FINANCIAL MARKETS
ECONOMIC DEVELOPMENT
EMERGING ECONOMIES
EMERGING MARKET
EMERGING MARKETS
EQUITY
EQUITY CAPITAL
EQUITY FLOWS
EQUITY MARKET
EQUITY MARKETS
EXCHANGE
EXCHANGE RATE
EXCHANGE RATES
EXPORTERS
EXTERNAL DEBT
EXTERNAL FINANCE
EXTERNAL INDEBTEDNESS
FEDERAL RESERVE
FEDERAL RESERVE BANK
FINANCE
FINANCIAL CRISIS
FINANCIAL FLOWS
FINANCIAL INSTITUTIONS
FINANCIAL INSTRUMENTS
FINANCIAL MARKET
FINANCIAL MARKETS
FINANCIAL OPENNESS
FINANCIAL SYSTEM
FINANCIAL SYSTEMS
FISCAL DEFICITS
FISCAL POLICY
FIXED INVESTMENT
FLEXIBLE EXCHANGE RATES
FOREIGN BANK
FOREIGN BANK PARTICIPATION
FOREIGN BANKS
FOREIGN CAPITAL
FOREIGN DIRECT INVESTMENT
FOREIGN INVESTMENT
FOREIGN INVESTMENT BANKS
FUTURE
GLOBAL BANKING
GLOBAL ECONOMY
GLOBAL FINANCE
GLOBAL MARKETS
GLOBAL TRADE
GOOD
GOODS
GOVERNMENT BOND
GOVERNMENT DEBT
GOVERNMENT REVENUES
GOVERNMENT SECURITIES
GROSS DOMESTIC PRODUCT
GUARANTEE
HOLDINGS
INDEBTEDNESS
INFLATION
INFLATION RATES
INFLATIONARY PRESSURES
INFORMAL LENDERS
INFRASTRUCTURE INVESTMENT
INITIAL PUBLIC OFFERINGS
INSTITUTIONAL INVESTORS
INSURANCE
INTEREST
INTEREST PAYMENTS
INTEREST RATE
INTEREST RATE SPREADS
INTEREST RATES
INTERNATIONAL BANK
INTERNATIONAL BANKING
INTERNATIONAL CAPITAL
INTERNATIONAL DEVELOPMENT
INTERNATIONAL FINANCE
INTERNATIONAL FINANCIAL STATISTICS
INTERNATIONAL FINANCIAL SYSTEM
INTERNATIONAL INVESTORS
INTERNATIONAL MARKET
INTERNATIONAL SETTLEMENTS
INVENTORIES
INVENTORY
INVESTMENT
INVESTMENT ACTIVITY
INVESTMENT BANKS
INVESTMENT CLIMATES
INVESTMENT RATES
INVESTMENT VEHICLES
INVESTMENTS
INVESTOR
INVESTOR CONFIDENCE
IPO
ISSUANCES
LENDERS
LEVEL OF INTEREST RATES
LIQUIDITY
LOAN
LOAN PORTFOLIOS
LOCAL CURRENCY
LOCAL STOCK MARKET
MACROECONOMIC CONDITIONS
MACROECONOMIC POLICIES
MACROECONOMIC STABILITY
MARKET BORROWERS
MONETARY AUTHORITY
MONETARY FUND
MONETARY POLICY
MONEY MARKETS
MUTUAL FUNDS
NET DEBT
NONPERFORMING LOANS
OIL PRICE
OIL PRICES
OPEN ECONOMIES
OPPORTUNITY COST
PORTFOLIO
PORTFOLIO FLOWS
POVERTY
PRIVATE CAPITAL
PRIVATE CREDIT
PRIVATE FINANCE
PROPERTY
PROPERTY RIGHTS
PURCHASING POWER
RATE OF RETURN
REAL INTEREST
REAL INTEREST RATES
REGULATORY FRAMEWORK
REGULATORY REACTION
REMITTANCES
RESERVE
RESERVES
RETURN
RETURNS
REVENUES
RISK ASSESSMENTS
RISK AVERSION
RISK PREMIUMS
RISK SHARING
RULE OF LAW
SHARE
SHARE OF INVESTMENT
SOFT LOANS
SOVEREIGN DEBT
STOCK
STOCK MARKET
STOCK MARKET CAPITALIZATION
STOCK MARKET VOLATILITY
STOCK MARKETS
SWAP
T-BILL
TRADE FINANCE
TRADE LIBERALIZATION
TRANSITION COUNTRIES
TREASURY
TREASURY BILL
WITHDRAWAL
spellingShingle ACCESS TO CAPITAL
ASSET PRICE
BALANCE SHEETS
BANK CREDIT
BANK LENDING
BANKING MARKETS
BANKING SECTOR
BANKING SECTOR EFFICIENCY
BANKING SECTORS
BANKING SYSTEM
BASIS POINT
BASIS POINTS
BOND
BOND FLOWS
BOND INDEX
BOND MARKETS
BOOM-BUST CYCLE
BOOM-BUST CYCLES
BORROWERS
BORROWING COSTS
BORROWING REQUIREMENTS
BUDGET
BUDGET DEFICITS
CAPITAL ACCOUNT
CAPITAL ACCOUNT LIBERALIZATION
CAPITAL CONSTRAINT
CAPITAL FLOWS
CAPITAL INFLOWS
CAPITAL INVESTMENT
CAPITAL REQUIREMENTS
CAPITAL SHORTAGES
CENTRAL BANK
CENTRAL BANKS
COLLATERAL
COMMERCIAL BANK
COMMERCIAL BANKS
COMMODITY PRICE
COMMODITY PRICES
CONSUMER PRICE INDEX
COUNTRY RISK
CREDIT DEFAULT
CREDIT DEFAULT SWAPS
CREDIT EXPANSION
CREDIT GROWTH
CREDIT MARKETS
CREDIT PROVISION
CREDIT RATING
CROSS-BORDER FLOWS
CURRENCIES
CURRENT ACCOUNT DEFICIT
CURRENT ACCOUNT DEFICITS
CURRENT ACCOUNT SURPLUS
DEBT FINANCING
DEBT FLOWS
DEBT OBLIGATIONS
DEPOSIT
DEPOSIT MONEY BANKS
DERIVATIVE
DERIVATIVE TRANSACTIONS
DERIVATIVES
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DOMESTIC BANK
DOMESTIC BANKING
DOMESTIC BANKS
DOMESTIC BORROWING
DOMESTIC CREDIT
DOMESTIC FINANCIAL MARKETS
ECONOMIC DEVELOPMENT
EMERGING ECONOMIES
EMERGING MARKET
EMERGING MARKETS
EQUITY
EQUITY CAPITAL
EQUITY FLOWS
EQUITY MARKET
EQUITY MARKETS
EXCHANGE
EXCHANGE RATE
EXCHANGE RATES
EXPORTERS
EXTERNAL DEBT
EXTERNAL FINANCE
EXTERNAL INDEBTEDNESS
FEDERAL RESERVE
FEDERAL RESERVE BANK
FINANCE
FINANCIAL CRISIS
FINANCIAL FLOWS
FINANCIAL INSTITUTIONS
FINANCIAL INSTRUMENTS
FINANCIAL MARKET
FINANCIAL MARKETS
FINANCIAL OPENNESS
FINANCIAL SYSTEM
FINANCIAL SYSTEMS
FISCAL DEFICITS
FISCAL POLICY
FIXED INVESTMENT
FLEXIBLE EXCHANGE RATES
FOREIGN BANK
FOREIGN BANK PARTICIPATION
FOREIGN BANKS
FOREIGN CAPITAL
FOREIGN DIRECT INVESTMENT
FOREIGN INVESTMENT
FOREIGN INVESTMENT BANKS
FUTURE
GLOBAL BANKING
GLOBAL ECONOMY
GLOBAL FINANCE
GLOBAL MARKETS
GLOBAL TRADE
GOOD
GOODS
GOVERNMENT BOND
GOVERNMENT DEBT
GOVERNMENT REVENUES
GOVERNMENT SECURITIES
GROSS DOMESTIC PRODUCT
GUARANTEE
HOLDINGS
INDEBTEDNESS
INFLATION
INFLATION RATES
INFLATIONARY PRESSURES
INFORMAL LENDERS
INFRASTRUCTURE INVESTMENT
INITIAL PUBLIC OFFERINGS
INSTITUTIONAL INVESTORS
INSURANCE
INTEREST
INTEREST PAYMENTS
INTEREST RATE
INTEREST RATE SPREADS
INTEREST RATES
INTERNATIONAL BANK
INTERNATIONAL BANKING
INTERNATIONAL CAPITAL
INTERNATIONAL DEVELOPMENT
INTERNATIONAL FINANCE
INTERNATIONAL FINANCIAL STATISTICS
INTERNATIONAL FINANCIAL SYSTEM
INTERNATIONAL INVESTORS
INTERNATIONAL MARKET
INTERNATIONAL SETTLEMENTS
INVENTORIES
INVENTORY
INVESTMENT
INVESTMENT ACTIVITY
INVESTMENT BANKS
INVESTMENT CLIMATES
INVESTMENT RATES
INVESTMENT VEHICLES
INVESTMENTS
INVESTOR
INVESTOR CONFIDENCE
IPO
ISSUANCES
LENDERS
LEVEL OF INTEREST RATES
LIQUIDITY
LOAN
LOAN PORTFOLIOS
LOCAL CURRENCY
LOCAL STOCK MARKET
MACROECONOMIC CONDITIONS
MACROECONOMIC POLICIES
MACROECONOMIC STABILITY
MARKET BORROWERS
MONETARY AUTHORITY
MONETARY FUND
MONETARY POLICY
MONEY MARKETS
MUTUAL FUNDS
NET DEBT
NONPERFORMING LOANS
OIL PRICE
OIL PRICES
OPEN ECONOMIES
OPPORTUNITY COST
PORTFOLIO
PORTFOLIO FLOWS
POVERTY
PRIVATE CAPITAL
PRIVATE CREDIT
PRIVATE FINANCE
PROPERTY
PROPERTY RIGHTS
PURCHASING POWER
RATE OF RETURN
REAL INTEREST
REAL INTEREST RATES
REGULATORY FRAMEWORK
REGULATORY REACTION
REMITTANCES
RESERVE
RESERVES
RETURN
RETURNS
REVENUES
RISK ASSESSMENTS
RISK AVERSION
RISK PREMIUMS
RISK SHARING
RULE OF LAW
SHARE
SHARE OF INVESTMENT
SOFT LOANS
SOVEREIGN DEBT
STOCK
STOCK MARKET
STOCK MARKET CAPITALIZATION
STOCK MARKET VOLATILITY
STOCK MARKETS
SWAP
T-BILL
TRADE FINANCE
TRADE LIBERALIZATION
TRANSITION COUNTRIES
TREASURY
TREASURY BILL
WITHDRAWAL
World Bank
Global Economic Prospects, January 2010 : Crisis, Finance, and Growth
description The world economy is emerging from the throes of a historically deep and synchronized recession provoked by the bursting of a global financial bubble. The consequences of the initial bubble and the crisis have been felt in virtually every economy, whether or not it participated directly in the risky behaviors that precipitated the boom-and-bust cycle. And while growth rates have picked up, the depth of the recession means that it will take years before unemployment and spare capacity are reabsorbed. This year's global economic prospects examines the consequences of the crisis for both the short and medium term growth prospects of developing countries. It concludes that the crisis and the regulatory reaction to the financial excesses of the preceding several years may have lasting impacts on financial markets, raising borrowing costs and lowering levels of credit and international capital flows. As a result, the rate of growth of potential output in developing countries may be reduced by between 0.2 and 0.7 percentage points annually over the next five to seven years as economies adjust to tighter financial conditions. Overall, the level of potential output in developing countries could be reduced by between 3.4 and 8 percent over the long run, compared with its pre-crisis path. The report further finds that the very liquid conditions of the first half of the decade contributed to the expansion in credit available in developing countries and that this expansion was responsible for about 40 percent of the approximately 1.5 percentage point acceleration of the pace at which many developing-country economies could grow without generating significant inflation. While developing countries probably cannot reverse the expected tightening in international financial conditions, there is considerable scope for reducing domestic borrowing costs, or increasing productivity and thereby regaining the higher growth path that the crisis has derailed.
format Publications & Research :: Publication
author World Bank
author_facet World Bank
author_sort World Bank
title Global Economic Prospects, January 2010 : Crisis, Finance, and Growth
title_short Global Economic Prospects, January 2010 : Crisis, Finance, and Growth
title_full Global Economic Prospects, January 2010 : Crisis, Finance, and Growth
title_fullStr Global Economic Prospects, January 2010 : Crisis, Finance, and Growth
title_full_unstemmed Global Economic Prospects, January 2010 : Crisis, Finance, and Growth
title_sort global economic prospects, january 2010 : crisis, finance, and growth
publisher World Bank
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20100219002746
http://hdl.handle.net/10986/2415
_version_ 1764385414731268096
spelling okr-10986-24152021-04-23T14:02:01Z Global Economic Prospects, January 2010 : Crisis, Finance, and Growth World Bank ACCESS TO CAPITAL ASSET PRICE BALANCE SHEETS BANK CREDIT BANK LENDING BANKING MARKETS BANKING SECTOR BANKING SECTOR EFFICIENCY BANKING SECTORS BANKING SYSTEM BASIS POINT BASIS POINTS BOND BOND FLOWS BOND INDEX BOND MARKETS BOOM-BUST CYCLE BOOM-BUST CYCLES BORROWERS BORROWING COSTS BORROWING REQUIREMENTS BUDGET BUDGET DEFICITS CAPITAL ACCOUNT CAPITAL ACCOUNT LIBERALIZATION CAPITAL CONSTRAINT CAPITAL FLOWS CAPITAL INFLOWS CAPITAL INVESTMENT CAPITAL REQUIREMENTS CAPITAL SHORTAGES CENTRAL BANK CENTRAL BANKS COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS COMMODITY PRICE COMMODITY PRICES CONSUMER PRICE INDEX COUNTRY RISK CREDIT DEFAULT CREDIT DEFAULT SWAPS CREDIT EXPANSION CREDIT GROWTH CREDIT MARKETS CREDIT PROVISION CREDIT RATING CROSS-BORDER FLOWS CURRENCIES CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS CURRENT ACCOUNT SURPLUS DEBT FINANCING DEBT FLOWS DEBT OBLIGATIONS DEPOSIT DEPOSIT MONEY BANKS DERIVATIVE DERIVATIVE TRANSACTIONS DERIVATIVES DEVELOPING COUNTRIES DEVELOPING COUNTRY DOMESTIC BANK DOMESTIC BANKING DOMESTIC BANKS DOMESTIC BORROWING DOMESTIC CREDIT DOMESTIC FINANCIAL MARKETS ECONOMIC DEVELOPMENT EMERGING ECONOMIES EMERGING MARKET EMERGING MARKETS EQUITY EQUITY CAPITAL EQUITY FLOWS EQUITY MARKET EQUITY MARKETS EXCHANGE EXCHANGE RATE EXCHANGE RATES EXPORTERS EXTERNAL DEBT EXTERNAL FINANCE EXTERNAL INDEBTEDNESS FEDERAL RESERVE FEDERAL RESERVE BANK FINANCE FINANCIAL CRISIS FINANCIAL FLOWS FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL OPENNESS FINANCIAL SYSTEM FINANCIAL SYSTEMS FISCAL DEFICITS FISCAL POLICY FIXED INVESTMENT FLEXIBLE EXCHANGE RATES FOREIGN BANK FOREIGN BANK PARTICIPATION FOREIGN BANKS FOREIGN CAPITAL FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FOREIGN INVESTMENT BANKS FUTURE GLOBAL BANKING GLOBAL ECONOMY GLOBAL FINANCE GLOBAL MARKETS GLOBAL TRADE GOOD GOODS GOVERNMENT BOND GOVERNMENT DEBT GOVERNMENT REVENUES GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT GUARANTEE HOLDINGS INDEBTEDNESS INFLATION INFLATION RATES INFLATIONARY PRESSURES INFORMAL LENDERS INFRASTRUCTURE INVESTMENT INITIAL PUBLIC OFFERINGS INSTITUTIONAL INVESTORS INSURANCE INTEREST INTEREST PAYMENTS INTEREST RATE INTEREST RATE SPREADS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BANKING INTERNATIONAL CAPITAL INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL FINANCIAL SYSTEM INTERNATIONAL INVESTORS INTERNATIONAL MARKET INTERNATIONAL SETTLEMENTS INVENTORIES INVENTORY INVESTMENT INVESTMENT ACTIVITY INVESTMENT BANKS INVESTMENT CLIMATES INVESTMENT RATES INVESTMENT VEHICLES INVESTMENTS INVESTOR INVESTOR CONFIDENCE IPO ISSUANCES LENDERS LEVEL OF INTEREST RATES LIQUIDITY LOAN LOAN PORTFOLIOS LOCAL CURRENCY LOCAL STOCK MARKET MACROECONOMIC CONDITIONS MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARKET BORROWERS MONETARY AUTHORITY MONETARY FUND MONETARY POLICY MONEY MARKETS MUTUAL FUNDS NET DEBT NONPERFORMING LOANS OIL PRICE OIL PRICES OPEN ECONOMIES OPPORTUNITY COST PORTFOLIO PORTFOLIO FLOWS POVERTY PRIVATE CAPITAL PRIVATE CREDIT PRIVATE FINANCE PROPERTY PROPERTY RIGHTS PURCHASING POWER RATE OF RETURN REAL INTEREST REAL INTEREST RATES REGULATORY FRAMEWORK REGULATORY REACTION REMITTANCES RESERVE RESERVES RETURN RETURNS REVENUES RISK ASSESSMENTS RISK AVERSION RISK PREMIUMS RISK SHARING RULE OF LAW SHARE SHARE OF INVESTMENT SOFT LOANS SOVEREIGN DEBT STOCK STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKET VOLATILITY STOCK MARKETS SWAP T-BILL TRADE FINANCE TRADE LIBERALIZATION TRANSITION COUNTRIES TREASURY TREASURY BILL WITHDRAWAL The world economy is emerging from the throes of a historically deep and synchronized recession provoked by the bursting of a global financial bubble. The consequences of the initial bubble and the crisis have been felt in virtually every economy, whether or not it participated directly in the risky behaviors that precipitated the boom-and-bust cycle. And while growth rates have picked up, the depth of the recession means that it will take years before unemployment and spare capacity are reabsorbed. This year's global economic prospects examines the consequences of the crisis for both the short and medium term growth prospects of developing countries. It concludes that the crisis and the regulatory reaction to the financial excesses of the preceding several years may have lasting impacts on financial markets, raising borrowing costs and lowering levels of credit and international capital flows. As a result, the rate of growth of potential output in developing countries may be reduced by between 0.2 and 0.7 percentage points annually over the next five to seven years as economies adjust to tighter financial conditions. Overall, the level of potential output in developing countries could be reduced by between 3.4 and 8 percent over the long run, compared with its pre-crisis path. The report further finds that the very liquid conditions of the first half of the decade contributed to the expansion in credit available in developing countries and that this expansion was responsible for about 40 percent of the approximately 1.5 percentage point acceleration of the pace at which many developing-country economies could grow without generating significant inflation. While developing countries probably cannot reverse the expected tightening in international financial conditions, there is considerable scope for reducing domestic borrowing costs, or increasing productivity and thereby regaining the higher growth path that the crisis has derailed. 2012-03-19T09:33:04Z 2012-03-19T09:33:04Z 2010 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20100219002746 978-0-8213-8226-4 http://hdl.handle.net/10986/2415 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank Publications & Research :: Publication Publications & Research