## Key highlights infographic

## Source details

**Canonical URL:** [Key highlights infographic](https://www.imf.org/-/media/files/publications/gfsr/2021/october/english/keyhighlightsinfographic.pdf)

## Other formats

- [Markdown version](/-/media/files/publications/gfsr/2021/october/english/keyhighlightsinfographic.pdf.md)
- [Structured JSON version](/-/media/files/publications/gfsr/2021/october/english/keyhighlightsinfographic.pdf.json)

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### Progress: Recent developments in 2021
- Further easing of financial conditions in advanced economies.
- Buoyant emerging market issuance.
- Strong rebound in corporate earnings.
- Resilient bank capital position.
- Rising investor support for climate.

### Risks: Financial stability vulnerabilities and downside scenarios
- Financial stability risks have been contained so far, but vulnerabilities remain elevated in some sectors.
- Specific vulnerability themes:
  - Downside risks to global growth.
  - Uneven corporate recovery.
  - Rising emerging market funding costs amid price pressures.
  - Downside risks to house prices.
  - Rapid growth of crypto assets.
  - Challenges facing life insurers.
- Sectoral risk indicators:
  - High solvency risk and high liquidity risk identified for COVID-19–sensitive sectors.
  - Advanced Economies' Corporate Sector: 2019, 2020, 2021 (indicators shown; select values in source).
- Stress scenario metric:
  - Potential Declines over Next Three Years (Worst-case scenario) presented for Advanced economies and Emerging markets (percent declines shown in source).

### Policies: Recommendations for authorities
- Policymakers should remain vigilant, securing the recovery while mitigating financial stability risks.
- Central banks should provide clear guidance about the policy normalization process to avoid a sudden tightening of financial conditions.
- If price pressures were more persistent than expected, monetary authorities should act decisively to avoid unmooring of inflation expectations.
- Fiscal support should shift toward more targeted measures and be tailored to country characteristics.
- Policymakers should tighten selected macroprudential tools to tackle pockets of vulnerabilities.
- Leveraging the SDR allocation, emerging and frontier markets should rebuild buffers and implement structural reforms.

### Key statistics and charts (preserved values and labels)
- Global Bank Capital Ratio: 2006, 2009, 2019, 2021 (chart labels).
- Votes Supporting Climate Resolutions (Conventional funds; Environment funds):
  - 2006, 2019, 2021 (United States, Germany, Japan) — charted with "Investment Yields Minus Guaranteed Returns" showing Negative and Positive sides.
- Financial Conditions Index:
  - Easy — Tight spectrum for Advanced economies and Emerging markets.
- Selected numeric values shown in charts and tables:
  - 14%
  - 14.7%
  - 20%
  - 44%
  - 51%
  - 72%
  - 2.6
  - 0.1
  - -20%
  - +15%
  - Global Corporate Earnings per Share axis: -4, -3, -2, -1, 0, 1, 2, 3, 4, 5, 6, 7
  - Global High-Yield Default Rate (chart labels: 2006, 2009, 2019, 2021)
  - Emerging Markets Bond Issuance ($bn, cumulative): Jan Apr Jul Oct; Pre-2020 5-year average; 2020; 2021 (charted)
  - Near-Term Growth Forecast Density and WEO 2022 forecast for Global growth rate (percent) — density and downside risk depicted.
  - Total Crypto Market Cap ($tn) — 2020, 2021, 2025 (labels shown)
  - Policy rate and Inflation: actual and market forecast (chart labels)
  - Specific percentage values in a panel: 2%, 5.8%, 4.9%, 3.3%

*International Monetary Fund — key highlights infographic (PDF).*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2021/october/english/keyhighlightsinfographic.pdf_