It is customary for us to take stock every year of what has happened in the global and domestic environment. We last met in April 2011, at a time when adverse developments in the euro zone were gathering momentum and financial stability risks were intensifying, thereby threatening the sustainability of the global recovery.
It is a year later, and while much has been done on various fronts to try and resolve the crisis, we continue to face significant global economic and financial market challenges. Downside risks remain elevated and continue to hold back a strong and sustainable global economic recovery. Geopolitical tensions remain a threat, with the potential to again trigger a sharp rise in oil prices.