Global Macro Financial Environment Overview
During the first half of 2013, the U.S. economy continued to grow at a modest but uneven rate. Asset performance and profitability have been improving progressively. Nonetheless, risks to the recovery still exist. The global macro-financial environment has witnessed a new strengthening trend. Nevertheless, financial market volatility has amplified, principally in the second half of 2013 when the Federal Reserve announced that it could scale back its asset purchase program later this year, which generated a rise in yields and declines in prices of a variety of risk assets. In Europe, the European Central Banks announced that the monetary policy stance will continue to be accommodative and will thereby continue to support the ongoing economic recovery in the euro area.
During the previous period, global economic activity improved slightly but it remains subdued and growth remains uneven across countries and regions as well. Despite the recent signs of recovery and further positive developments over the past six months in the Euro area, fiscal and banking sector problems in the region remain a serious threat to global financial stability. Markets remain sensitive to signs of indecisive political support for reforms needed to safeguard the stability of the currency union
The Bahrain’s? financial? sector? was? resilient? in? the? face? of? the? different? financial?
turbulences it had encountered in the past five years. The banking sector continues performing efficiently during 2012. As European leaders emphasized that the current crisis will end by spring 2013, we could expect that the economy of Bahrain and the regional economies would improve in a better global environment. Therefore, we could expect a growth in the banking and financial sector in Bahrain.
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