1. J.P.Morgan Chase S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L Major Trends in the Global Economy Prof. Jacob A. Frenkel Chairman, JPMorgan Chase International Former Governor, Bank of Israel Herzliya Conference March 13, 2013

2. 2 J.P.Morgan Chase 3/8/2013 Real GDP Growth, World Economy

3. 3 J.P.Morgan Chase 3/8/2013 Global GDP Shares

4. 4 J.P.Morgan Chase 3/8/2013 China’s Role in Global Trade (bill. Usd) U.S.&EU People’s Republic of China Exports Imports Imports Exports Asia

5. 5 J.P.Morgan Chase 3/8/2013 Gross National Savings as a % of GDP, 2010

6. 6 J.P.Morgan Chase 3/8/2013 China Foreign Exchange Reserves

7. 3/8/2013 7 Crisis of the Euro Area Diverging Unemployment Rates Diverging Unemployment Rates Diverging Competitiveness Diverging Competitiveness

8. 8 J.P.Morgan Chase 3/8/2013 Unemployment Rate: Euro Area Countries

9. 9 J.P.Morgan Chase 3/8/2013 Unit Labor Cost: Euro Area Countries Source: OECD, forecast for 2012 & 2013 Note: Labor cost per unit of output for the total economy

10. 3/8/2013 10 Monetary Policy Central Banks’ Policy Rates Central Banks’ Policy Rates Central Banks’ Balance Sheets Central Banks’ Balance Sheets

11. 11 J.P.Morgan Chase 3/8/2013 Central Bank Policy Rates

12. 12 J.P.Morgan Chase 3/8/2013 Assets of Key Central Banks (Indexed Levels)

13. 3/8/2013 13 Budget Deficit Budget Deficit Federal Debt Federal Debt US Fiscal Challenge

14. 14 J.P.Morgan Chase 3/8/2013 U.S. Government Deficit as % of GDP

15. 3/8/2013 15 US Federal Debt: Pre- and Post- Cliff

16. 3/8/2013 16 Evolution of the US Federal Deficit

17. 3/8/2013 17 Evolution of US Federal Debt

18. 3/8/2013 18 Demographic Trends

19. 19 J.P.Morgan Chase 3/8/2013 Age Distribution: Japan

20. 20 J.P.Morgan Chase 3/8/2013 Age Distribution: China

21. 21 J.P.Morgan Chase 3/8/2013 Age Distribution: India

22. 22 J.P.Morgan Chase 3/8/2013 Age Distribution: Africa