Prospects for Development

Global Economic Prospects 2013

Global economy remains fragile; high-income countries suffering from slow growth. Read more ...

Development Prospects

Providing information, analysis, and advice on global trends in the world economy.  Find out more ...

Global Economic Monitor

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Prospects Daily: Spanish and Italian bonds advance…Investor confidence in Germany rises strongly..

Financial Markets…Spanish and Italian government bonds bounced back from their earlier losses, with their benchmark 10-year yields dropping 6 basis points to 5.17% and 4 bps to 4.36%, as a report showed German investor confidence surged to the highest level in nearly three years this month, boosting risk-appetite for the region’s high-yielding debt. Notably, Spain sold €4 billion ($5.35 billion) of 3- and 9-month bills with an average yield of 0.421%, down from 0.441% in January auction.

Prospects Weekly: Q3 Euro Area GDP growth remained positive

Despite escalating debt concerns, Q3 Euro Area GDP growth remained positive mostly on account of robust growth in the two largest economies Germany and France. Q3 GDP growth was even stronger in the US, Japan and China (all of which benefitted from the post-Tohoku bounce back), with consumer spending also being an important growth driver.

Prospects Weekly: Concerns about global economic prospects amid loss of confidence

Concerns about global economic prospects amid heightened financial market turmoil are weighing on consumer spending despite the relief coming from lower commodity prices. Associated uncertainty is reflected in a sharp decline of gross capital flows to developing countries in Q3, with bond and equity flows having plunged as investors sought safe-haven assets.

Prospects Weekly: Ongoing debt-limit debate and disappointing growth reports weighed on the U.S. dollar

European heads of state agreed on a €109 bn second financial package for Greece today. About one-third of the financing will be covered by debt swaps or rollovers by private bondholders. Aside from improving the terms of existing multilateral loans, the leaders also agreed to expand the European Financial Stability Facility’s mandate, including authority to buy bonds on the secondary market.