World Bank2017-08-152017-08-152010https://hdl.handle.net/10986/27811The global crisis is now in the rear view mirror and world growth is being restored. In sharp contrast with past episodes of global turmoil, this time the recovery is led by the periphery, specifically by the larger and more dynamic emerging markets (Brazil, China, India, South Korea, Malaysia, Philippines, and Thailand). For this group of emerging markets (EMs), the contraction in economic activity was much smaller than that of rich countries, the recovery started earlier, and the rebound has been much steeper. Latin America and the Caribbean (LAC) are second among emerging regions, after Asia, in the strength of the recovery. The first part of the report focuses on macroeconomic and financial aspects, emphasizing the outlook going forward. Finally, the second part examines some aspects of the adjustment in labor markets during this crisis in comparison to previous ones.en-USCC BY 3.0 IGOACCELERATION OF INFLATIONACCUMULATION OF RESERVESADVANCED ECONOMIESADVERSE EFFECTSASSETSBANK LENDINGBANKINGBANKING SYSTEMBANKING SYSTEMSBUSINESS CYCLEBUSINESS CYCLESCAPITALCAPITAL ACCUMULATIONCAPITAL FLOWSCAPITAL INFLOWSCENTRAL BANKSCOMMODITY PRICECOMMODITY PRICE BOOMCOMMODITY PRICESCOMPARATIVE ANALYSISCOMPETITIVENESSCONSENSUS FORECASTCONSENSUS FORECASTSCONSOLIDATIONCONSUMPTIONCONSUMPTION DEMANDCOUNTRY MARKETSCREDITCURRENCYCURRENCY APPRECIATIONCURRENCY APPRECIATIONSDEBTDEBT CRISESDEBT SUSTAINABILITYDEMANDDEPRESSIONDIRECTION OF TRADEDISTORTIONDISTORTIONSDOMESTIC CONSUMPTIONDOMESTIC CREDITDOMESTIC CURRENCYDOMESTIC DEMANDDOMESTIC MARKETDOMESTIC PRICEDOMESTIC PRICE INFLATIONDOMESTIC SAVINGDOWNSIDE RISKSDOWNWARD RIGIDITYDRIVERSDUTCH DISEASEECONOMIC ACTIVITYECONOMIC COMPLEMENTARITYECONOMIC DOWNTURNSECONOMIC GROWTHECONOMIC OUTLOOKECONOMIC OVERHEATINGECONOMIC PERFORMANCEECONOMYELASTICITYEMERGING MARKETSEQUITYEURO ZONEEXCHANGEEXCHANGE MARKETEXCHANGE RATEEXCHANGE RATE APPRECIATIONSEXCHANGE RATE FLEXIBILITYEXCHANGE RATE INTERVENTIONEXCHANGE RATE POLICYEXPECTATIONSEXPORT COMPETITIVENESSEXPORT DIVERSIFICATIONEXPORT GROWTHEXPORT MARKETEXPORTERSEXPORTSEXPOSUREEXTERNAL DEMANDEXTERNAL SHOCKEXTERNAL SHOCKSFEDERAL RESERVEFEDERAL RESERVE BANKFINANCEFINANCIAL CRISESFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL POLICYFISCAL POLICIESFISCAL POLICYFORECASTSFOREIGN CAPITALGDPGDP PER CAPITAGLOBAL DEMANDGLOBAL ECONOMYGLOBAL LIQUIDITYGOLDGOLD STANDARDGOODSGROWTH RATEGROWTH RATESHIGH INFLATIONHUMAN CAPITALIMPORTIMPORT PRICESIMPORTSINCENTIVESINCOMEINDEBTEDNESSINDEPENDENT MONETARY POLICYINFLATIONINFLATION EXPECTATIONSINFLATION FORECASTSINFLATION RATEINFLATIONARY EXPECTATIONSINFLATIONARY PRESSURESINFORMATIONINSURANCEINTERESTINTEREST RATEINTEREST RATE DIFFERENTIALINTEREST RATE DIFFERENTIALSINTEREST RATESINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL FINANCIAL STATISTICSINTERNATIONAL RESERVEINTERNATIONAL RESERVESINVENTORIESINVENTORYINVESTMENTINVESTMENT BOOMINVESTMENT CLIMATEINVESTMENT LEVELSLABORLABOR DEMANDLABOR FORCELABOR FORCE PARTICIPATIONLABOR MARKETLABOR MARKET POLICIESLABOR MARKET POLICYLABOR MARKETSLABOR ORGANIZATIONLABOR SUPPLYLAYOFFSLIQUIDITYLOCAL CURRENCYLOW INTEREST RATESMACROECONOMIC POLICYMANAGEMENTMARKET FORCESMARKET PRESSUREMARKET PRESSURESMARKET SHARESMARKETSMINIMUM WAGESMONETARY CONDITIONSMONETARY POLICYMONETARY POLICY FRAMEWORKSNATIONAL SAVINGSNATURAL RESOURCENET EXPORTSNOMINAL EXCHANGE RATENOMINAL WAGESOPEN ECONOMIESOTHER CURRENCIESOUTPUT GAPPOVERTY REDUCTIONPRICE INCREASESPRICESPRIVATE CAPITALPRODUCTIONPRODUCTIVITYPRODUCTIVITY GROWTHPUBLIC SPENDINGREAL APPRECIATIONREAL EXCHANGE RATEREAL EXCHANGE RATESREAL GDPREAL WAGESRECESSIONRECESSIONSREGIONAL GROWTHREGIONAL SHOCKSREGULATORY REFORMRELATIVE PRICESRELATIVE WEIGHTRENTRENTSRESERVE ACCUMULATIONRESERVE REQUIREMENTSRESOURCE ALLOCATIONRISKRISKSSAFETYSAFETY NETSSEMI-ELASTICITIESSIDE EFFECTSSLOWDOWNSTANDARD DEVIATIONSTANDARDSSTOCK MARKETSSTOCK PRICESTOCK PRICESSTRUCTURAL CHANGESUPPLYSUPPLY CONDITIONSSURPLUSSURPLUSESTEMPORARY EMPLOYMENTTEQUILA CRISISTRADABLE GOODSTRADETRADE OPENNESSTRADE STATISTICSTRAININGTRANSFERSTRENDSTROUGHUNCERTAINTIESUNCERTAINTYUNEMPLOYEDUNEMPLOYED WORKERSUNEMPLOYMENTUNEMPLOYMENT RATEUNEMPLOYMENT RATESVARIABLESWAGE RIGIDITIESWAGESWEAK CURRENCIESWEALTHWEIGHTSWELFAREWORLD ECONOMYWORLD TRADEReportWorld Bank10.1596/27811