Global Economic Crisis

The global economy is in the middle of the deepest and most widespread post-war recession. U.E. economy is not spared either. The strong increase in the financial crisis in autumn 2008 has led global economic downturn which, in turn, has further weakened the financial sector. Over time, the ambitious political actions taken by governments and central banks in late autumn 2008, have prevented a collapse of financial systems and managed to bring a degree of stability, but financial markets and institutions still remain under stress. The global economy is in a deep recession. The economic situation remains very uncertain [1]. Investor confidence in the banking sector remains fragile, despite improvements that marked certain market segments. This forecast assumes that the measures in place to support the banking sector will begin to have a greater impact in coming quarters, which also facilitates the transmission of monetary policy stance to support the real economy. An improved performance of the banking sector by the end of 2009 should provide the basis for a progress of bank loans. As the financial crisis has intensified, global trade and industrial production has virtually collapsed in the last quarter of 2008.