The worldwide economic growth for 2009 is set to come in at just 0.5 percent, according to the International Monetary Fund (IMF). That is the lowest growth rate since World War II, but the organization expects a gradual recovery with growth in 2010 predicted to be 3 percent.
The predictions from the organization came as the world’s top economic leaders gathered at the World Economic Forum in Davos, Switzerland. “We now expect the global economy to come to a virtual halt,” said the IMF’s chief economist, Olivier Blanchard. This is despite action around the world designed to stem the financial crisis by individual countries.
Growth in emerging and developing nations has been substantial in past years, coming in at 6.25 percent for 2008. That is expected to slow considerably, to 3.25 percent for this year. The main causes of the drop are falling export demand, lower commodity prices and tighter financial controls.
