World economy 'to shrink in 2009' - IMF
20-03-2009
The International Monetary Fund has warned that the global economy will shrink for the first time in 60 years this year. "Global economic activity is falling - with advanced economies registering their sharpest declines in the post-war era - notwithstanding forceful policy efforts," the IMF said in a report. It cut its forecasts to a global contraction of 0.5-1.0 percent, sharply lower than the 0.5 percent growth given only on January 28. The revision "reflects unrelenting financial turmoil, negative incoming data, sinking confidence, and the limited effect to date of policy responses with respect to the restoration of financial system health," it said. Advanced economies are expected to suffer "deep recessions" in 2009, shrinking between 3.0 and 3.5 percent, while growth will slow sharply in developing countries.
