Global forecast becomes bleaker
10-12-2008
The World Bank has offered a grim 2009 outlook of just 0.9 percent growth for the global economy, while a recession was declared in Canada and a rescue for US automakers hung in the balance. In its "Global Economic Prospects" report, the World Bank sharply cut its growth forecast and predicted world trade volume would fall 2.1 percent as a worldwide credit crisis hits rich and poor nations alike. In Canada, the central bank lowered its key interest rate Tuesday by 0.75 point to 1.50 percent and said the Canadian economy had slid into a recession amid the global financial crisis. In Washington, the White House demanded that Detroit automakers prove their "long-term viability" in return for a $15-billion rescue bailout but said a deal with Congress was in sight.
