World Bank Changes Economic Forecast
The world economy will shrink by much more than previously thought, according to the World Bank.
The world economy will contract by 3% this year, far more than the 1.75% drop it predicted earlier this year.
"Most developing country economies will contract this year and face increasingly bleak prospects," World Bank president Robert Zoellick said.
The gloomier forecast comes despite recent signs that the worst of the recession is over.
This year is likely to be the first global recession since World War II.
'Aftershocks'
The revised figure brings it closer in line with the OECD, which represents rich nations, who predicted that the world economy will shrink by 2.7%.
The World Bank's sister institution, International Monetary Fund (IMF), said in April the world economy will shrink by 1.3% this year.
You mean Wall Street worked itself up and started to believe its own propaganda that everything was going to be fine. Shocking.
Categories: Economics
Tags: Labor Manufacturing Jobless World Bank Economic Recovery Indicator Unemployment Wall Street Labor Department US DOW Jones Economy America
'Shocking'? Not so much.Believing in one's own propaganda goes way beyond WallStreet and into every corner of the financial world.And therein lies the problem.The 'greed is good' way of moving capital is a dinosaur that has already died and doesn't have the good sense to fall over and rot away. Forget the United States for a moment. China and India are prime examples of runaway growth with no thought of tomorrow. For two giants of 'socialism' they are abject failures of 'central planning'.Like the Soviet Union before them, they continue to pollute the air and water of their citizens, tamping down dissent of any kind, overspending on 'defense'and assuming this 'bubble' will last forever.When these two economies crash-and they will- the whole jig will be up.And with them US. The only people that could sustain such a collapse are the EU countries. The manufacturing and agriculture bases of the EU are strong and sustainable.The strength of the Euro compared to the Dollar is a joke.The joke being on US.And when that collapse happens, the last WallStreet exec fleeing with a suitcase full of cash,won't bother turning off the lights. There won't be a light to turn off.
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I've been thinking the very same point myself lately. Delighted to see a person on the same wavelength! Nice article.
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A growing number of young women who have the freedom to decide have decided that career can wait, and the delicious early years of their children's lives can't.
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