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Mapping the global capital markets, January 2007: Europe rising

  • The world's financial assets now total more than $140 trillion and are on pace to reach $214 trillion by the decade's end.
  • Moreover, the value of the world's financial assets now exceeds global GDP by a factor of three—an unprecedented degree of financial depth, which largely bodes well for the world's economies.
  • While the United States remains the world's largest financial intermediary, the eurozone has emerged as a powerhouse in the financial landscape, and Japan remains strikingly isolated.
  • This collection of exhibits outlines the way capital markets around the globe are becoming stronger, more liquid, and increasingly integrated.
This article contains the following exhibits:
  • Exhibit 1: Global financial depth is increasing.
  • Exhibit 2: Cross-border capital flows reach a new high.
  • Exhibit 3: Europe, the United States, and the United Kingdom account for 90 percent of capital flows.
  • Exhibit 4: Latin America and Eastern Europe have developed significant capital flow links with the United States and the eurozone.
  • Exhibit 5: After declining in the 1990s, bank lending and debt securities have gained share since 1998.
  • Exhibit 6: The United States absorbs around 85 percent of the world's net capital flows.
  • Exhibit 7: Global financial stock has grown to $140 trillion.
  • Exhibit 8: Most of the difference in growth of global financial stock in 2005 over the previous year reflects changes in the value of the US dollar against major currencies.
  • Exhibit 9: The eurozone is gaining on the United States and United Kingdom in financial depth.
  • Exhibit 10: Worldwide growth was driven by equities.
  • Exhibit 11: More than 40 percent of US growth in financial stock came from corporate debt.
  • Exhibit 12: Regional growth is balanced.

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