In mid-2011, conditions deteriorated in the industrialized economies. Early in the year, instability in North Africa combined with other factors to push up fuel prices. Then,
in March, the tragedy of the earthquake, tsunami and nuclear disaster in Japan damaged global production chains.
Although the impacts of these factors eased in the second semester, concern mounted over the threat of default in Greece, Ireland and Portugal and the repercussions of
such an event for larger European economies. In late July, the difficulties in securing congressional approval on the
United States public debt ceiling added to the volatility prevailing in financial markets.
