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20
US Debt Ceiling
(US$ trillion)
16.3
16.4
16.5
16.6
16.7
16.8
10/12
11/12
12/12
01/13
02/13
03/13
04/13
05/13
06/13
07/13
08/13
09/13
10/13
Inflation
(%)
-0.5
0
0.5
1.5
2.5
3.5
USA
Euro Zone
Japan
China
2013
2012
BECOMING
A FAMILY
I
I
Beginning in 1982, VakıfBank
established regional offices
in Istanbul and the Aegean
and Çukurova regions
where business activity is
concentrated. The Bank
feels that it is as important
to contribute to their
employees’ social life as
it is for their working life,
so in 1985, to ensure the
continuation of strong ties
with VakıfBank employees
to the Bank after they
retire, Türkiye VakıfBank
T.A.O. Emekliler Derneği
(VakıfBank Pensioners’
Association) was established
with headquarters in Ankara.
at negotiations held on October 1, 2013, the
US government partially shut down for the first
time in 17 years. A budget dispute also led to
increased concerns regarding the debt ceiling
limit in the markets. Indeed, with an agreement
reached on the 2014 draft budget between
the two parties in the Congress on October 17,
2013, the debt ceiling limit was suspended
until February 7, 2014; the required spending
authorization was given to the US government.
This period of uncertainty that lasted two weeks
exerted downward pressure on the growth
performance of the US economy and affected
global financial markets at the same time.
2013 IN THE WORLD AND IN TURKEY
Looking at labor market developments within the
global economy, the unemployment problem in the
Euro zone, which has been in the recession for a
long time, has continued to be at the forefront.
Policy Interest Rates
(%)
12/03
06/04
12/04
06/05
12/05
06/06
12/06
06/07
12/07
06/08
12/08
06/09
12/09
06/10
12/10
06/11
12/11
06/12
12/12
06/13
12/13
USA
Euro Zone
Japan
6
5
4
3
2
1
0
Source: Bloomberg
Labor market developments
Looking at developments from the labor market
within the global economy, the unemployment
problem continued to be at the top of the
agenda in the Euro zone. The Euro zone
unemployment rate rose to 12% by the end of
2013 up from 11.9% in 2012. Although the Euro
zone demonstrated positive growth in the last
three quarters of 2013, following six consecutive
quarters of negative levels, there were signs of a
moderate recovery; however, this development
has not yet been reflected in the employment
market. Even though the unemployment rate
in the US economy declined to 7% in 2013,
stronger macroeconomic recovery signals
should be received for the rate to fall to 6.5%,
the reference level taken by the Fed in its
expansionary monetary policies.
Curbing deflation
In the struggle with deflation, a common
problem for the actors that make up a significant
portion of the global economy, developments in
inflation are highly important.
In general, considering IMF data, while a
recovery from inflation is expected in Japan and
China by the end of 2013 compared to 2012, the
US economy is expected to have a 1.2% inflation
rate in 2013, down from 1.8% of 2012. The Euro
zone’s rate is expected to reach 1.3% in 2013
compared to 2.2% in 2012. The fact that those
countries have still failed to perform as expected
regarding inflation can be interpreted as an
indication of the continuation of expansionary
monetary policies.