Briefing covers Europe’s response to debt crisis
29 November 2011, New York
DESA’s Development Policy and Analysis Division released the November issue of the Monthly Briefing on the World Economic Situation and Prospects highlighting the European Union response to the debt crisis, the G20 Summit, and featuring an economic overview of each region of the world.
The briefing highlights the measures taken by EU leaders to solve the sovereign debit crisis in the euro zone in order to prevent a major banking crisis. The EU leaders agreed to raise 106 billion Euros to recapitalize banks since the measures taken by the European Central Bank have not been enough to calm financial markets, so far.
Also in focus is the G20 Summit held in Cannes on 3-4 November, which was dominated by the economic and political turmoil in Greece and the Euro area. Although this region reports the highest level of unemployment since the creation of the Euro, there has been a shortfall of a coordinated action for job creation.
The remainder of the briefing provides a current synopsis of developed economies, economies in transition and in developing economies. Key points are summarized below:
- United States exhibits some positive signs despite continued weak business and consumer confidence
- Japan’s currency (yen) reaches record high before falling again
- Western Europe encounters mixed economic signals amidst deepening gloom
Economies in transition:
- Commonwealth of Independent States shows strong harvests boosting agriculture
- Serbia observes contraction of industrial output and estimates GDP growth may slow
- A number of African countries feel rising fiscal pressures
- East Asian economic growth moderates as a result of weak external demand
- Thailand’s agriculture and manufacturing industries severely hit by flooding
- South Asian currencies show accelerating inflation
- Turkey is facing monetary policy trade-offs
- Latin America and the Caribbean have growing investments, but short-term capital movements threaten currency stability