## Figure 1.1. Global Financial Conditions

## Source details

**Canonical URL:** [Figure 1.1. Global Financial Conditions](https://www.imf.org/-/media/files/publications/gfsr/2018/april/ch1/pdf/figure1-1.pdf)

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### Overview
- Global financial conditions have tightened somewhat, but remain supportive of growth.
- The price of risk is low, markets are buoyant, and leverage is high across both advanced and emerging market economies.

### Panel 1: Global Financial Conditions Index
- Title: Global Financial Conditions Index (Standard deviations)
- Time markers / labels shown in figure: 13 14 15 16 17 18 :Q1; 2012; 2017:Q3; Oct. 2017 GFSR
- Index interpretation:
  - Higher values of FCIs indicate tighter conditions.
  - The shaded area denotes ± one standard deviation changes relative to the level of Global FCI at 2017:Q3.
- Visual indicators in figure:
  - Tighter / Easier axis with numeric ticks: –10, –8, –6, –4, –2, 0, 2, 4
  - A label "Tightening" and annotation "± one standard deviation from 2017:Q3"

### Panel 2: Global and Regional FCIs and Their Components
- Global FCI (1–10) and Global FCI Components
- Global FCI Components (numbered exactly as in source):
  1. Short-term rates
  2. Long-term real rates
  3. Term spread
  4. Corporate spread
  5. Interbank spread
  6. Equity price growth
  7. Equity return volatility
  8. Credit to GDP
  9. Credit growth
  10. House price growth
- Regional FCIs (exact region labels as in source):
  - United States
  - Euro area
  - Japan
  - China
  - EM excluding China
- Regional Price of Risk FCIs (exact region labels as in source):
  - United States
  - Euro area
  - Japan
  - China
  - EM ex-China
- Comparison note:
  - Results are compared with a “Price of Risk” FCI, encompassing price-based information only (components 1–7).
- Shading convention:
  - Easing of conditions is shown in blue and tightening in yellow.
  - For FCI components, the shading is based on their contribution to the FCI index (for example, a narrowing of credit spreads relative to historical norms would contribute to FCI easing and be shown in blue).

### Key findings and signals shown in the figure
- Global financial conditions: tightened somewhat since the reference but remain supportive of growth.
- Price of risk: low.
- Market conditions: buoyant.
- Leverage: high across both advanced and emerging market economies.
- Historical comparison anchor: 2017:Q3 used as reference for ± one standard deviation shading.

Sources: Bloomberg Finance L.P.; and IMF staff estimates.

*Figure as presented in the source PDF.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2018/april/ch1/pdf/figure1-1.pdf_