Tuesday, March 10, 2009

Recession - world economy to shrink in 2009

World economy to 'shrink' in 2009

The global economy will shrink this year for the first time since World War II, the World Bank has said.

The bank's forecast is gloomier than other estimates, which still foresee some growth.

By the middle of 2009, industrial output could be as much as 15% lower than 2008, while trade may record the biggest decline in 80 years, it said.

Developing countries face a financing shortfall of up to $700bn (£497bn) this year, the bank added.

The sharpest trade losses will be in East Asia, it said, where there are many large exporters.

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