Welcome to the United Nations
April 2013
Summary:
- Renewed?concerns?about?banking?fragility?in?the?euro?area
- Capital?inflows?into?emerging?markets?gain?momentum
- The?Bank?of?Japan?discloses?its?new?monetary?stance?which?is?beyond?market?expectations
- United?States?housing market?strengthens?further
Agreement was finally reached on a rescue programme for Cyprus. Cypriot?banks were hard hit by the write-down of their holdings of Greek sovereign debt resulting from the Greek bailout agreement. Cypriot bank assets?are over seven times the size of the country?s GDP, making a government?bailout impossible without external support. The bailout required about ?17 billion, to be generated through a combination of bank restructuring and aid.?
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By the end of 2012, global liquidity and improvements in financial markets along with enhanced economic outlook in?some emerging economies encouraged investors? risk appetite?and the search for higher yields. As a result, capital inflows increased notably to developing countries. Despite some volatility, this trend has continued in early 2013. According to?estimates by the World Bank, capital inflows to developing?countries increased by 47 per cent in January and February?in comparison to the same period in 2012.
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Download the World Economic Situation and Prospects Monthly Briefing No. 53