2 9708/42/F/M/19© UCLES 2019Section A Answer this question. 1Downturn in the growth of the world’s leading economies In February 2016 there were dramatic changes in both financial and commodity markets across the world. Central bank interest rates in some countries were at their lowest recorded level, prices of banking shares fell heavily and oil prices in New York fell to US$26.34 a barrel, the lowest in 13 years. Economists warned that the falls in share prices could indicate a downturn for economies with a possible collapse of banks, as happened in the financial crash of 2008. A healthy banking system is needed to promote economic growth. Very low interest rates undermine the profitability of commercial banks.
