Welcome to the United Nations
May 2009
Summary:?
- World economy will contract by 2.6 per cent in 2009; recovery in 2010 is possible, but risks of prolonged recession are high.
- Developing countries are disproportionately hit by the crisis.
- Fiscal responses, while significant, are asymmetric: more financial transfers to developing countries are needed as part of better coordinated global efforts.
The world economy is in the worst recession since World War?II. According to the preliminary revised United Nations forecasts, world gross product (WGP) is expected to fall by 2.6 per?cent in 2009, compared with an average rate of growth of more?than 3 per cent in the years prior to the crisis. Even as some observers see ?glimmers of hope?, most key economic indicators suggest that the recession is far from bottoming out. Risks for a more prolonged recession remain very high. The collapse of global trade is still ongoing, financial sector deleveraging continues, and business and consumer confidence are at very low levels in most economies.?
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Download the World Economic Situation and Prospects Monthly Briefing No. 8