The year in retrospect

BIS Annual Economic Report  | 
23 June 2013

During the past year, the global economic recovery continued to lose momentum. The moderation in growth reflected three broad trends: overall weaker but still solid output growth in emerging market economies; a continued tepid expansion of the US economy; and recession in the euro area. Central banks injected additional stimulus into the economy by cutting interest rates and by introducing policy innovations to further ease monetary conditions. These actions reduced downside risks and boosted financial markets. However, bank credit conditions continued to vary across countries, with strong credit growth in emerging market economies, easing credit conditions in the United States and tightening lending standards in the euro area. Although some economies have made progress in reducing private non-financial sector debt, incomplete balance sheet repair continues to slow growth and make economies vulnerable.