Its Official: The Economy Will Slump

Source: The Economist

'In its twice-yearly World Economic Outlook, the IMF cut its 2009 forecast for global GDP growth to just 3%. In its previous update, in July, it had said the world economy would grow by 3.9% next year."

Comment: Per capita GDP growth of course is lower than GDP growth in countries with growing populations, as is the case in most developing nations. It is also known that economists are worse in predicting GDP in rapidly changing economic conditions than in more stable conditions. However, the conditions are bad and likely to get worse. JAD