..the disruption in the credit and financial institutional markets in North America; surging energy prices, which affect countries that are net energy consumers; and soaring food prices worldwide, which disproportionately affect developing countries where a larger share of GDP is spent on food. Together, these shocks turned a soaring global economy to one of widespread concern.

It appears the worst of the financial crisis is over. While the fallout from the subprime defaults and falling home prices will take time to work itself out, the Federal Reserve acted swiftly to calm the markets and stabilize Wall Street.

The US surprised many forecasters by posting a 0.6% annualized rate of GDP growth in the first quarter of 2008. With the US skirting a recession, April’s job losses slowing, a falling unemployment rate and aggressive fiscaland monetary policy initiatives taken, the US economy appears poised to turn the corner in the latter half of this year...