Economy: World Bank predicts global economy will face its first contraction since World War II

The global economy is expected to shrink by 1.7 percent in 2009, its first contraction since World War II, led by a 2.9 percent decline in the high-income countries, the World Bank said Tuesda, cited by AFP.

"This would be the first decline in world output since World War II," the bank said.

The sharp contraction comes amid a global economic crisis, which prompted a dramatic 2.6 point downward revision of a November estimate of 0.9 percent growth.

Developing countries have been hit harder than anticipated in the global economic crisis and lack the means to withstand the onslaught, the multilateral institution said in an outlook update released two days before a Group of 20 summit on the economic crisis in London.

Source: FOCUS Information Agency

Published by Mike Hitchen, Mike Hitchen Consulting
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