20 Mar 2009

IMF expects world economy to shrink

7:20 pm on 20 March 2009

The world economy is expected to shrink by between 0.5% to 1% in 2009, the first global contraction in 60 years.

In its gloomiest forecast yet, the International Monetary Fund says developed countries will suffer a deep recession.

The agency says the financial crisis has battered global economic activity beyond what was previously anticipated.

Two months ago, the IMF predicted world output would increase by 0.5%.