GROWTH OUTLOOK AND MACROECONOMIC CHALLENGES
GLOBAL MONITORING REPORT 2010
FIGURE 3.3 Bond spreads have declined in emerging markets and developing countries 100
1,000
90
900 issues of international bonds (left axis)
US$, billions
70
800 700
60
600
50
500
40
400
30
300
20
200
10
100
0 Q1 2000
Q1 2001
Q1 2002
Q1 2003
Q1 2004
Q1 2005
Q1 2006
Q1 2007
Q1 2008
Q1 2009
spreads, basis points
EMBI Global (right axis)
80
0 Q1 2010
Source: Dealogic; Bloomberg. Note: Bond issues and spreads as of end-March 2010..
FIGURE 3.4 Share prices have recovered sharply 800 700 index (January 2000 = 100)
72
developing countries
600 500 400 300
emerging markets 200 100 0 Jan. 2000
Sept. 2000
May 2001
Jan. 2002
Sept. 2002
May. 2003
Jan. 2004
Sept. 2004
May 2005
Jan. 2006
Sept. 2006
May. 2007
Jan. 2008
Sept. 2008
May. 2009
Feb. 2010
Source: IMF International Financial Statistics. Note: Prices are in the local currency.
limited as banks in advanced economies continue deleveraging. Financial policies, such as improved financial sector regulation and crisis measures, have contributed to avoidance of widespread banking crises in emerging and developing countries. The public response to the financial crisis has been broad, covering several instruments,
such as liquidity support, deposit insurance, bank interventions, and recapitalizations. Banking sectors in many emerging economies have also benefited from higher financial market resilience, including less volatility in exchange and interest rates,2 and therefore have avoided negative dynamics from balance sheet effects.