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Lara's Backpack
03-02-09, 13:54
The embattled world economy is crawling to a halt under the financial crisis and would grow by only 0.5 per cent this year, the slowest pace since World War II, the International Monetary Fund said on Wednesday.

"The world economy is facing a deep recession," the IMF said in an update of November forecasts that shaved about 1.75 point off its prior global growth estimate.

The IMF said the advanced economies were now seen contracting by 2.0 per cent, a sharp downward revision from the negative 0.3 per cent estimate two months ago.

"Despite wide-ranging policy actions, financial strains remain acute, pulling down the real economy," the 185-nation institution said, warning the outlook was highly uncertain.

The United States, the epicentre of the financial crisis, would endure a 1.6 per cent contraction, the IMF said, slashing its prior estimate of 0.9 per cent.

Nonetheless, the world's biggest economy would weather the financial storm better than most other major advanced economies.

Japan's economy would shrink by 2.6 per cent in 2009 instead of the mild prior estimate of 0.2 per cent.

The world's second-largest economy would be in recession for the second consecutive year, following a 0.3 per cent contraction in 2008.

The 27-member eurozone economy would hit a wall, suffering a 2.0 per cent contraction after growing 1.0 per cent in 2008. The previous 2009 estimate was for a 0.5 per cent contraction.

Germany, Europe's biggest economy, would shrink by 2.5 per cent this year after a 1.3 per cent expansion in 2008, according to IMF figures published six days ago.

Britain would suffer the most, with gross domestic product (GDP) activity contracting 2.8 per cent, after 0.7 per cent growth last year.

Of the major advanced economies, Canada would be the least affected, hit with a 1.2 per cent contraction.

Developing countries were forecast to have relatively weak growth of 3.3 per cent in 2009, about half the 6.3 per cent expansion of last year.

China would remain the world's fastest-growing economy, putting in a 6.7 per cent pace, down from 9.0 per cent in 2008.

India's economic growth would slow to 5.1 per cent after 7.3 per cent.

To give the scale of the deepening recession, the IMF said the first annual global contraction during the postwar period would have a cumulative output loss - relative to potential growth - comparable to the 1974-1975 and 1980-1982 recessionary periods.

"A sustained economic recovery will not be possible until the financial sector's functionality is restored and credit markets are unclogged," it said.

The IMF cautioned that "the uncertainty surrounding the outlook is unusually large."

"Downside risks continue to dominate, as the scale and scope of the current financial crisis have taken the global economy into uncharted waters," it said.

Assuming that the necessary measures will be taken to address the crises and they are effective, the IMF forecast the global economy would recover in 2010, with growth of 3.0 per cent.

"The main risk is that unless stronger financial strains and uncertainties are forcefully addressed, the pernicious feedback loop between real activity and financial markets will intensify, leading to even more toxic effects on global growth."

So the future is not so bright, how are we all holding on? Personally Ive gone from expecting to pay for my uni fees upfront, to putting it all to study debt. There is just no money anymore :(

Encore
03-02-09, 13:58
**** the IMF :wve:

ajrich17901
03-02-09, 13:59
**** the IMF :wve:

Second that lol

Mad Tony
03-02-09, 17:10
The sooner confidence in the system grows, the sooner economies will recover.

Nefertiti_89
03-02-09, 17:27
Sigh...I think I'll just go live in the forest frolicking nekkid through the trees and feasting on berries with my pet wombat, Frederick.

And just wait till it all blows over...

Mad Tony
04-02-09, 14:05
http://news.bbc.co.uk/1/hi/uk_politics/7869748.stm

Gordon Brown slips up and says the world is in a depression.

Slip up or no slip up, all this is gonna do is make things worse. I can't wait until the next elections. There's no way that worthless tool is gonna win.

aileenwuornos
04-02-09, 14:34
That this may or may not be a conspiracy movie, but I recommend Zeitgeist:Addenum, as the first one is a little bit dated.

It has some good solutions ;)

Mad Tony
04-02-09, 14:54
Zeitgeist is a load of BS IMO. It's the message at the end that annoys me the most, especially the bit about "boycotting the military". I have a brother who's in the military, and he's absolutely fine. He's not some evil robot that these paranoid conspiracy nuts make the military out to be. I just think it's very disrespectful. After all, the military (whether it be America's or Britain's) have defend their people in periods of war. You can bash the "evil neocon" banks, energy companies, media and politicians all you want, but bad-mouthing the military just for the sake of paranoia is a big no for me.

From what I've seen around the internet the "Zeitgeist movement" seems like more of a cult than anything.

SamReeves
04-02-09, 16:59
That this may or may not be a conspiracy movie, but I recommend Zeitgeist:Addenum, as the first one is a little bit dated.

It has some good solutions ;)

:vlol:

What's that secular communism?

No thanks. I'll keep my money and culture to myself.