Monthly Briefing on the World Economic Situation and Prospects, No. 45
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July 2012
Summary:
- Marked deceleration in global trade
- Progress made in EU bank recapitalization and growth pact
- Growth slows in Brazil and India
Monthly data of global and regional trade confirm that a marked deceleration of international trade is underway. During the first four months of this year, global trade volume was at a stand-still, contracting 0.1 per cent from December 2011 to April 2012, according to the latest data published by the Netherlands Bureau of Economic Policy Analysis (CPB). While short-term trade data fluctuated significantly, a decelerating trend emerged starting in December 2011, where monthly growth of 0.9 per cent was followed by weak growth and subsequent contractions of 0.2 and 0.8 per cent in the last two months.
In the latest EU Summit at the end of June, an agreement was made to establish a single supervisory body for euro area banks, after which funds from the European Stability Mechanism (ESM) could be used to directly recapitalize euro area banks (thus breaking the link between bank bailouts and increasing sovereign debt burdens for individual countries).
Download the World Economic Situation and Prospects Monthly Briefing No. 45
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