World Bank Predicts Global Economy to Shrink
World Bank said in a report that the global economy will shrink in 2009 for the first time since WW II, The New York Times reported.
The New York Times reported that pessimistic forecasters had predicted that there would be at least a little growth in 2009. Global trade is also predicted to shrink for the first time since 1982, and for the most since the 1930s.
The recent economic crisis is having major effects in the United States, but it's also wreaking havoc across the globe.
World Bank said that "emerging-market countries," are facing the biggest challenges with a financial gap of a combined $270 billion to $700 billion.
These countries are mostly located in Latin America, Central Europe, Asia and Africa.
According to World Bank, the wealthiest governments should create a "vulnerability fund," to help struggling countries
“We need investments in safety nets, infrastructure, and small and medium size companies to create jobs and to avoid social and political unrest.”said Robert B. Zoellick, the World Bank’s president.
The report is expected to be presented to a meeting of finance ministers from 20 large developing countries.
The New York TImes: http://www.nytimes.com/2009/03/09/business/09bank.html?hp