World Bank: Global Economy to Shrink For First Time Since WWII
The World Bank recently stated that the global economy is likely to shrink for the first time since WWII. Trade will also decline, but by the most in 80 years, their report said. The new forecast underscores International Monetary Fund expectations that the economy will actually continue to expand, albeit by only 0.5% in 2009.
Bank President Robert Zoellick added that “we need to react in real time to a growing crisis that is hurting people in developing countries.” In fact western nations ought to act quickly in order to “avoid social and political unrest.” The strong words come as 94 out of 116 developing countries have already suffered from economic slowdowns.