US in recession, 25-percent chance world follows: IMF
April 9th, 2008 - 10:27 pm ICT by admin - Send to a friend:DPA
Washington, April 9 (DPA) The US economy is expected to enter recession in 2008 and there is a 25-percent chance the rest of the world will follow the suit, the International Monetary Fund said Wednesday. The world’s largest economy is forecast to grow at 0.5 percent in 2008, but will contract by 0.7 percent on a fourth-quarter-to-fourth-quarter basis, according to the IMF’s semi-annual World Economic Outlook report.
The IMF already confirmed last week, after leaked media reports, that it projects world growth to slow to 3.7 percent in 2008 after growing at a 4.9-percent clip in 2007.
There is a 25-percent chance that 2008 growth will fall below 3 percent, which the IMF rates as a global recession.
DPA
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Posted in World, |
September 3rd, 2008 at 3:16 am
Britain in recession 2008! Europe, part of the western hemisphere and part of SE Asia in recession 2009! Fully blown world in recession 2010! This seems a fairly confident and predictable outcome considering that our banks, who have caused the worst economic crisis in modern times, now have no real money of their own in reserve. The reason why they cannot lend anymore at the level they could and why the world is heading for the socio-economic turmoil that is clearly upon the horizon now. Many of our banks will undoubtedly go to the wall according to the edicts of capitalism and the market forces dictum. With share losses of western banks, insurance groups and investment institutions of US$2.7 TRILLION over just the last 18 months and bank losses in excess of well over US$1 TRILLION predicted when this is all over, the forecast becomes more-or-less a certainty. Indeed, who would have thought that Europe’s once largest bank UBS (and one of the largest in the world) would have been worth a mere 25% of what it was only a mere 15 months ago. But adding to this many are now worth less than 60% of what they were. Unfortunately the unseen suffering around the world that these great bank losses will cause to all people should be the main point of our anxiety. For in this respect millions will die through a global recession that had nothing at all to do with them. Let us hope that when we are all over this terrible malaise in a decade from now, that governments around the world will make perfectly sure that our banks can never crucify us ever again. Do we really learn is the question?
Dr David Hill
World Innovation Foundation Charity (WIFC)
Bern, Switzerland