Last year the financial markets were strained during 2009. In the advanced economies, market conditions were very difficult until forceful policy actions were implemented to restructure the financial sector, resolving the uncertainty about losses, and break the adverse feedback loop with the slowing real economy. In emerging economies, financing conditions were likely remained acute for some time—especially for corporate sectors that have very high rollover requirements.
In 2010 the global economy is expected to make a slow recovery, expanding at a predicted rate of 3 percent, while employment and credit will remain strained. Furthermore, there are many downside risks and adverse scenarios that could materialize, such as an untimely unwinding of fiscal and monetary policies in rich nations.