## World Economic Outlook, October 2013: Transition and Tensions

_World Economic Outlook, October 8, 2013_

## Source details

**Canonical URL:** [World Economic Outlook, October 2013: Transition and Tensions](https://www.imf.org/en/publications/weo/issues/2016/12/31/world-economic-outlook-october-2013-transition-and-tensions-40432)

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## Bibliographic details
- Published: October 8, 2013
- Series: World Economic Outlook
- DOI: https://doi.org/10.5089/9781484340639.081

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### Overview
- Global growth is in low gear, and the drivers of activity are changing.  
- These dynamics raise new policy challenges.  
- Advanced economies are growing again but must continue financial sector repair, pursue fiscal consolidation, and spur job growth.  
- Emerging market economies face the dual challenges of slowing growth and tighter global financial conditions.  
- This issue of the World Economic Outlook examines the potential spillovers from these transitions and the appropriate policy responses.

### Major findings and analysis
- Advanced economies: continued recovery accompanied by the need for financial sector repair, fiscal consolidation, and measures to spur job growth.  
- Emerging market economies: confronted with slowing growth and tighter global financial conditions that raise vulnerabilities.  
- The issue analyzes how transitions in major economies can generate spillovers to other countries through policy and financial channels.

### Chapters highlighted
- Chapter 3: explores how output comovements are influenced by policy and financial shocks, growth surprises, and other linkages.  
- Chapter 4: assesses why certain emerging market economies were able to avoid the classical boom-and-bust cycle in the face of volatile capital flows during the global financial crisis.

### Policy implications and recommendations
- For advanced economies:
  - Continue financial sector repair.  
  - Pursue fiscal consolidation.  
  - Spur job growth.  
- For emerging market economies:
  - Manage the dual challenges of slowing growth and tighter global financial conditions, including the risk of volatile capital flows.  
- Cross-border considerations:
  - Examine potential spillovers from transitions in advanced economies to emerging markets via policy, financial shocks, and trade linkages.

### Subjects and keywords (as listed)
- Subjects: Balance of payments, Capital flows, Capital inflows, Current account, Emerging and frontier financial markets, Financial crises, Financial markets, Global financial crisis of 2008-2009, Inflation, Prices.  
- Keywords: Africa, Asia and Pacific, Capital flows, Capital inflows, Caribbean, Central America, Central and Eastern Europe, countercyclical fiscal policy, country pair, currency depreciation, Current account, debtor economy, Emerging and frontier financial markets, fiscal policy, fiscal policy regime, Global, Global financial crisis of 2008-2009, Inflation, market economy, Middle East, monetary policy, monetary policy normalization, monetary policy shock, North Africa, solid windowtext 1.5pt, trade linkage, U.S. dollar, WEO.

*International Monetary Fund. World Economic Outlook, October 2013: Transition and Tensions.*

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_Source: https://www.imf.org/en/publications/weo/issues/2016/12/31/world-economic-outlook-october-2013-transition-and-tensions-40432_