Monday, July 13, 2009

World Bank Predicts Bleak Outlook For World Economy

World Bank Predicts Bleak Outlook For World Economy

http://www.washingtonpost.com/wp-dyn/content/article/2009/06/22/AR2009062202688.html?wpisrc=newsletter

The World Bank has predicted that the global economy will shrink at an annualized rate of 2.9% down from its March prediction of 1.7%. Developing nations which grew at nearly 6% in 2008 are expected to achieve 1.2% this year with India and China being the biggest growth contributors. If one were to take them out of the tally, the rest of the countries will shrink by 1.6%.

It appears that developing nations will be the worse affected by the crisis with fewer foreign investments as well as a stagnant export market. Ironically, it is these economies that alone are in a position to reverse the effects of the downturn. All they need is infusion of private capital and credit availability.

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