The World Bank predicts the global recession will be deeper than it previously thought, with the world economy forecast to shrink 2.9%.
That is far steeper than the 1.7% contraction the World Bank forecast just three months ago.
The large industrial economies of Europe, Japan and the United States are expected to shrink by more than 4% this year - and the bank says the story will be even worse for the world's poor.
There are fresh worries about the diminishing flow of private capital into developing countries, which has already fallen by almost 50% this year.
The World Bank says East Asia and the Pacific will be particularly hard hit, and for longer because of trade links with developed countries.