Javier Guzmán Calafell: Emerging markets in an era of dollar appreciation and volatile capital flow

Remarks by Mr Javier Guzmán Calafell, Deputy Governor of the Bank of Mexico, at the State Street Global Advisers (SSGA)-Official Monetary and Financial Institutions Forum (OMFIF) Roundtable "Policy Rupture: Challenges and Opportunities for Public Investors", London, 4 April 2017.

I would like to start by thanking the organizers for the invitation to speak at this panel.

Several years after the outbreak of the global financial crisis, the world economy continues to display a weak performance, despite the recovery that has taken place since then. Following the rebound observed in 2010, the growth rate of global GDP has been on a declining trend, averaging 3.5 percent annually during the period 2011-2016, a full percentage point below its precrisis trend. It should be noted that the above owes to a large extent to developments in the advanced economies(AEs), whose sharp GDP contraction and slow recovery in the aftermath of the crisis limited the increase in real GDP from 2007 to 2016 to a mere 10 percent. Even though cyclical factors explain to some extent the aforementioned