Global economy falling at fastest rate since WW2

The World Bank announced yesterday that it predicts that the global economy will recede for the first time since World War II, as world trade is expected to fall to its lowest in over 80 years.

The current global economic crisis will result in a multi-billion dollar shortfall in the poor and developing nations, said the World Bank.

Overall, a total of 129 countries face a shortfall of $270 to $700 billion this year and even though this is the lower end of the estimate, financial institutions around the world are unlikely to be able to meet it.

According to Robert Zoellick, President of the World Bank Group, private sector creditors are turning their back on emerging markets and the most vulnerable economies have been thrown back into poverty. Zoellick has called for real time action as the effects are being felt by hundreds of millions of people in the developing world.

The suggestion to the problem has been for each developed country to inject 0.7 per cent of its stimulus package to help the smaller poorer countries.

In a bid to increase investments, Zoellick has pleaded to private companies to invest in investment safety nets and help develop infrastructure.

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