However, going forward a recovery is foreseen, considering that the expansionary measures adopted by its policy makers have begun to bear fruit. Colombia and Argentina have also shown signs of deceleration, But Colombia growing more than Argentina. Peru, meanwhile, is still growing strongly. In Mexico, growth during the first half of the year exceeded expectations, but in the near future the effects of the frail external sector will be seen more clearly. The developed economies continue to show weak growth. The developed economies continue to post weak growth. In the United States, the overall evaluation is still of a slow recovery. The United Kingdom is in recession, affected by anemic external and internal demand, the latter influenced by tight credit conditions and policies aimed at fiscal consolidation. In the Eurozone, the GDP shrank in the second quarter, after being flat in the early part of the year. The performance of the zone continued to be marked by big differences between peripheral economies (with sharp falls) and central European economies (with modest increases), reflecting financial and fiscal vulnerabilities. However, the weakness of some incoming indicators from Germany is cause for concern, particularly domestic consumption compounded by the weak performance of its exports and manufactures.
The EU’s new Markets in Financial Instruments Directive (MiFID), for example, is expected to bring about important changes and intensify competition in the European financial market. This development will also influence the future of financial market infrastructures in Switzerland. Against this background, it is certainly crucial for the Swiss financial market infrastructures to persistently foster their competitiveness. They have pursued this strategy so far, and will need to continue doing so in the future. BIS Review 87/2006  1