Global Economic Prospects Financial Market Outlook

The paper assesses the 2012 global financial conditions. This financial market outlook reports that global conditions have improved substantially since July 2012, a reflection of the cumulative steps taken by high-income countries’ central banks. Major monetary policy announcements by the European Central Bank in the third quarter of 2012 led to a marked decline in borrowing costs and the cost of insuring against sovereign default (as measured by sovereign CDS rates) in high -spread Euro Area countries. Together with measures to increase liquidity in the United States (QE3) and Japan, the easing of the risk environment in Europe contributed to a drop in CDS rates in developing countries.

World bank 2013

The World Bank is an international financial institution that provides loans to developing countries for capital programs. The World Bank's official goal is the reduction of poverty.