World Economy To Shrink 1.3 Percent: IMF

"The global economy will shrink this year for the first time in six decades, at the rate of 1.3 percent, before it makes a slow trudge back to grow by just under 2 percent next year. Releasing the World Economic Outlook yesterday, the International Monetary Fund (IMF) said the advanced economies would recover from what is the deepest recession since World War II early next year and would be back to normal by the end of that year...." [The Straits Times (Singapore)/Factiva]

Al Jazeera adds that "... 'The longer this goes on, the longer and the deeper will be the recession,' said IMF Chief Economist Olivier Blanchard on Wednesday.... Three months ago, the IMF had projected a global growth rate of 0.5 percent, although last month it warned of a deep recession...." [Al Jazeera/Factiva]

AP reports that "...without the help of countries' stimulative fiscal policies -- such as tax reductions or increased government spending -- the blow to the global economy would be even worse, Blanchard said: 'We would be in the middle of something very close to a depression.' Even the projected 1.3 percent drop could leave at least 10 million more people around the world jobless, some private analysts said...." [Associated Press/Factiva]