Global Economy Likely to Shrink This Year
March 20, 2009 by admin · Leave a Comment
Growth still expected in emerging markets, however
The global economy is likely to shrink this year, reports the International Monetary Fund. Considering the global financial crisis, and the recession, this is not exactly surprising news.
However, even with the overall contraction, emerging markets are still expected to see growth. Instead of a 6.1% rate, though, they are likly to grow only 2.5%. China, of course, is predicting 8% growth this year, but one can never be too sure what sort of information these claims are based upon.
CNN Money reports on the expected declines in developed nations:
Leading the slump will be the world’s most developed economies, including the United States, Europe and Japan.
Japan’s economy is forecast to shrink by 5.8% in 2009, while Europe’s is expected to decline 3.2% and the United States’ 2.6%.
It is clear that this year will see a contraction, but economic growth probably won’t go negative. And, if global economic stimulus efforts work, then there is a good possibility that things will start turning around by early 2010.
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