Friday, January 30, 2009
More on Financial Crisis
According to the IMF, World growth is projected to fall to just ½ percent in 2009, its lowest rate in 60 years; advanced economies will experience their sharpest contraction in the post-war period, while, emerging and developing economies, though more resilient than in previous global downturns will also suffer serious setbacks. Despite wide-ranging policy actions by governments and central banks around the world, financial strains remain acute, pulling down the real economy. The IMF has raised its estimate of the potential deterioration in US originated credit assets held by banks and others from $1.4 trillion last October to $2.2 trillion in end January.