Global context and its implications for the Arab region

In 2014, the world economy witnessed several significant shifts. Monetary policy stances have revealed a split between the United States of America and other developed economies. Reflecting its robust economic recovery, United States monetary policy is scheduled to be normalized with a hike in interest rates by the end of 2015, but interest rates of other developed economies are expected to stay at their historic lows. This difference in interest rate prospects has caused a significant appreciation of the United States dollar against other major currencies, including the euro and the Japanese yen.

Related Subject(s): Economic and Social Development