The IMF has cautioned the world at large that the global economy is set to decline by 1.7% by year end while the world output would increase by a mere0.5%. With most world economies shrinking at an alarming pace, the negative growth spiraling unemployment rates , the financial sector accumulating losses recovery is expected to Longer than previously estimated. The world body has also predicted a shrunken financial sector and finances would be hard to come by-this would severely stifle the growth of developing nations while the more affluent countries will have to combat hard at reducing their budget deficits. Identifying the problems the IMf has also suggested solutions-asking governments to work on strengthening banks and continue with “short-term fiscal plans” the recession may last a little less longer.
October 1, 2009
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