World Bank predicts global gloom

World Bank predicts global gloom

news.bbc.co.uk

The World Bank has forecast a significant decline in global economic growth in 2009 for both developed and emerging countries.

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In a report assessing economic prospects, the Bank has predicted that the world's annual economic growth will slow to 0.9%, from 2.5% this year.

The rate of growth for emerging economies is expected to be around 4.5%, down from 7.9% in 2007.

The Bank said a deep global recession could not be ruled out.

And its forecast suggests that, on a per capita basis, world growth would be negative in 2009.

"Following the insolvency of a large number of banks and financial institutions... capital flows to developing countries have dried up and huge amounts of market capitalisation have evaporated," the bank said.

The World Bank has warned that some emerging economies are likely to face serious challenges, including bank failures and currency crises, even if global bail-out plans start restoring confidence in financial markets.

The Bank's chief economist, Justin Lin, said the financial crisis "has eased tensions in commodity markets, but is testing banking systems and threatening job losses around the world".

It also warns that capital flows to developing countries are shrinking fast, reducing the level of investment, while the slowdown in world trade is likely to cut into their export markets.

Things are going to get much much much worse.
I pity anyone who thinks otherwise.



news.bbc.co.uk
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Bah, we'll have a world resource war before most nations really start feeling the pain of this economic meltdown.

It's not really your finances you should be worried about at the moment, but finding a nice quiet secluded place that isn't likely to be targeted or invaded.

Me, I'm thinking somewhere in the Canadian Sheild... maybe New Lisgard.