The gradual recovery in developed countries and slowing
pace of economic growth in developing markets point to a
more balanced outlook in global economic growth in the
coming period.
The monetary policies implemented in developed
countries continue to shape the global economy.
Extraordinarily accommodative monetary policies implemented
by the central banks of developed countries, with the aim of
supporting their economies, led to a gradual improvement
in the economic activity. Accordingly, in 2013, economies of
developed countries started to display a tendency of economic
recovery.
In the post-crisis period, developing markets recorded rapid
growth but as a result of concerns that global liquidity would
not be as supportive as in previous periods, growth rates of
those countries lost some pace.
In 2013, the U.S. economy performed well relative to other
developed countries. This raised concerns that the U.S. Federal
Reserve (Fed) might reduce its support provided to economy
by asset purchases. This led to capital outflows from the
developing markets in the second half of the year. In this
period, the increase in global risk perception and fluctuations in
capital flows exerted pressure on the economies of developing
markets.
The U.S. took the first step towards exiting from the
expansionary monetary policy.
At its December 2013 monetary policy meeting, the Fed decided
to reduce the volume of monthly asset purchases amounting
to USD 85 billion ongoing for more than a year in under the QE3
program starting from January 2014. At the same time, the Fed
underlined that policy rates could be kept close to zero as long
as inflation remained below the long-term target of 2%, even if
unemployment rate decreased to 6.5%which is the threshold
set for monetary policy decisions.
The Global Economy
After recording rapid growth in the post-crisis
period, the pace of growth in developing markets
decelerated in 2013.
Balanced growth
A period of more balanced growth in global
economy
Activities
22
İşbank
Annual Report 2013
