CONSOLIDATED FINANCIAL STATEMENTS >
DIRECTORS’ REPORT
46
| 2013 ANNUAL REPORT | PRYSMIAN GROUP
The year 2013 was characterised by a weak macro
environment, with a general slowdown reported in most of
the world economies, whether developed or emerging.
In particular, first-half economic activity expanded at a
sluggish pace, continuing the downward trend underway
since the second half of 2011, held back by recession in the
Eurozone and by a gradual slowing of growth in emerging
countries and in the United States.
The macro environment partially stabilised in the second and
third quarters of 2013; however, despite the continuation
of expansionary monetary policies by central banks,
growth in global economic activity remained weak overall,
reflecting among other things, a slowdown in growth
rates in emerging economies, as well as uncertainty over
impending public finance decisions in the United States, due
to the fiscal consolidation measures undertaken to reduce
deficit levels. In the latter part of the year, the risks to the
global economy eased slightly due to fewer uncertainties
about US government policy in support of domestic private
consumption, to the gradual decline in the unemployment
rate in the United States, and to a decline in risk premiums
on government debt in European countries, leading to a
reduction in spreads on government bonds. However, despite
general stabilisation in the macro environment, the dynamics
of the global economy remained generally weak, with
unemployment rates still high in many developed economies
REFERENCE SCENARIO
MACROECONOMIC SCENARIO
The global situation partially stabilised
during the second half of the year, even if
economic activity remained generally weak
despite continuing expansionary monetary
policies by central banks. Slowing growth
in emerging economies contributed to this
weakness.
and industrial output stagnant or declining in several others.
Growth estimates for international trade in 2013 were
gradually revised down over the course of the year, with world
output projected to strengthen only from 2014.
Despite the difficult political and macroeconomic scenario,
global demand in 2013 nonetheless reported an overall
increase: in fact, global GDP grew by +3.0%* on the previous
year (compared with growth of +3.1%* and +3.9%* in 2012
and 2011 respectively), driven by the significant, albeit
slowing, growth achieved by Asia’s emerging economies
(China +7.7%*, ASEAN5 – Indonesia/ Malaysia/Philippines/
Thailand/Vietnam +5.0%*).
China, in particular, has confirmed a high growth rate
(+7.7%*) in line with the previous year but still a far cry from
that in the recent past (+11.2% average annual growth in the
period 2006-2010), reflecting the slowdown in global demand
as well as some difficulties in its domestic market.
In the United States, despite the positive signs on the
domestic demand side and a gradual decline in the
unemployment rate, uncertainties over the federal budget
and the possible tapering of quantitative easing contributed
to slower growth than in the previous year: GDP grew by
+1.9%* in 2013, down from +2.8%* the previous year.
Europe saw another slight deterioration in economic activity,
although the first signs of stabilisation emerged in the
latter part of the year, especially in countries like Germany,
France and the United Kingdom. Eurozone GDP contracted by
-0.4%* on 2012, compared with -0.7%* in the previous year.
In general, the negative economic trend, which began in the
second half of 2011, was further exacerbated by consolidation
of the deficit-cutting measures in several Eurozone countries
(for example, Greece, Portugal, Spain, Italy and France),
involving not only public spending cuts but also higher taxes,
with an adverse impact on domestic demand and consumer
confidence.
* Source: IMF, World Economic Outlook Update – January 2014.
