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EMERGING FROM THE
GLOBAL RECESSION
MONETARY POLICY
LIQUIDITY
MANAGEMENT
ENSURING SAFETY
AND SOUNDNESS
OF FINANCIAL INSTITUTIONS AND
FINANCIAL SYSTEM
SINGAPORE AS AN
INTERNATIONAL
FINANCIAL CENTRE
ENHANCING
OPERATIONAL
CAPABILITIES
AND RESILIENCE
CURRENCY AND
PAYMENT SYSTEM

EMERGING FROM THE GLOBAL RECESSION

Over the past year, the world economy has gradually emerged from its worst recession in the post-war era. The global financial crisis, which saw the collapse of Lehman Brothers in September 2008, caused massive economic fallout worldwide. Amidst an erosion of confidence, global trade and industrial production collapsed in the first half of 2009, resulting in a 2.4% year-on-year contraction in world GDP over the same period.

Since then, however, the timely implementation of expansionary fiscal and monetary stimuli has produced a rebound in economic activity. This recovery has generally continued into 2010 with growing evidence that the supports to growth have moved beyond exports and industrial production to the broader economy in the US and the Asia ex-Japan1 economies.

1 Asia ex-Japan comprises China, Hong Kong, Indonesia, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand.