5-Hour Energy: A Success Equal Parts Caffeine, Chemistry and…
Suddenly, Amazon Doesn't Love Its Moms Anymore
Add two more somber forecasts for the global economy -- each with its own ignominious distinction.
The World Bank said the global economy will enter a recession for the first time since 1982. Equally distressing, international trade will also decline from 2007 levels.
Incredibly, the bank said it now expects global GDP growth to decline to a scant 0.9% in 2009 from 2.5% in 2008. That is a recession for the global economy, as any global growth rate under 2.0% is tantamount to a recession, economist David H. Wang said.
"This is very concerning news, if the World Bank's forecast proves to be accurate," Wang said. "Up to now many forecasts had global growth in the 1.5-2.0% range for 2009. My own estimate was for 1.8-2.0% GDP growth. A GDP rate below 0.9% is a major recession, which will mean higher unemployment, lower corporate revenue, and decreased trade, in most nations."
Further, global trade is expected to decline 2.1% in 2009, the bank said, its first decline since 1982, on reduced global demand and export credits.
The World Bank said the financial crisis has sharply reduced investment, a key pillar that supported the strong GDP growth in emerging markets during the past five years. Tighter credit conditions and reduced appetite for risk will lower investment growth in the developing world to 2.5% in 2009 from 13% in 2008. "That's like going from 60 miles per hour on a highway to driving at about 15 miles per hour, a rate that's way to slow," Wang said. "The global economy is slowing now not just due to decreased demand, but also due to a lack of credit."
GDP growth in developing countries will likely slow to 4.5% in 2009 from 7.9% in 2007, the bank said. Growth in rich countries, which includes many developed economies such as the U.S. and the E.U., will likely be negative in 2009.
Economic Analysis: Along with continued central bank efforts to keep money markets liquid, the above forecast will provide more evidence for the need for fiscal stimulus -- in all major economic regions of the world (U.S., E.U., Asia) -- to fill the void created by cutbacks in business investment and consumer spending. It also speaks to the need for both emerging markets and developed nations to create internal, sustainable, domestic growth engines -- such as renewable energy industries and other 'green' sectors -- as export sales are not likely to play as large a role in GDP growth during the next economic expansion.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
Reader Comments (Page 1 of 1)
12-10-2008 @ 8:00PM
Peter Hailey said...
Have things ever been this bad for the worlds economy in past history that we can use to learn from? As it turns out there is. We call it the Dark Ages. If you think things are bad now, wait till next year.
12-10-2008 @ 9:35PM
a said...
WORKING GROUP ON FINANCIAL MARKETS EXECUTIVE ORDER # 12631 SIGNED AND SO ORDERED BY RONALD REGAN 1988).GIVING GOVERNMENTAL DEPARTMENTS FULL AUTHORITY TO REDISTRIBUTE THE PUBLIC MONEY HOWEVER THEY SEE FIT (SPREADING THE PEOPLES WEALTH) TO PREVENT THE LOSS OF INVESTORS AND THE BIG CORPORATE WOLVES OF WALSTREET .NEW WORLD GERMAN IDEALISM AT WORK.
12-10-2008 @ 9:41PM
A said...
Recession is only the beginning.
http://news.aol.com/article/riots-could-topple-greek-government/270395
"It's very simple — we want the government to fall. This boy's
death was the last straw for us," Petros Constantinou, an organizer
with the Socialist Workers Party, said in Athens. "This government
wants the poor to pay for all the country's problems — never the
rich — and they keep those who protest in line using police
oppression."
(NEW WORLD)- (GERMAN IDEALISM)-(DIALECTIC MATERIALISM) GWF HEGEL, ET.
AL.
THE METHODS OF GERMAN IDEALISM CONTROL THE WORLD AND THE USA OF WHICH
IS NOW GOING THROUGH A TRANSITIONAL STAGE OF THE STATE WILL RULE AND
THE "CITIZENS"
WILL CEASE TO HAVE CONSTITUTIONAL RIGHTS AND LIBERTIES !!
12-10-2008 @ 9:45PM
A said...
RESTORE PRESIDENTIAL EXECUTIVE ORDER 11110 , THE FEDERAL RESERVE IS A PRIVATE CORPORATION THAT LENDS MONEY TO THE AMERICAN GOVERNMENT.ITS TIME TO RETURN THE POWERS OF MONEY CREATION TO THE U.S TREASURY TO ITS ORIGINAL CONSTITUTIONAL STATE ::::::::::::::::::
U.S. Constitution - Article 1 Section 8 STATES ONE OF THE POWERS OF CONGRESS SHALL BE TO:
coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; GOVERNMENT RUN MEANS NO INTEREST DEBT THAT GROWS DAILY AGAINST THE AMERICAN ECONOMY.
12-10-2008 @ 9:55PM
BHarrison said...
The American people can EITHER "rise up" and clean out the CORRUPTIONin Congress, the DNC and the RNC or they will suffer substantially worse economic conditions.
The ONLY SOLUTION is to RESTORE "INTEGRITY" to our Congress, and then to the FIs, and the markets. The die are already cast in that SEVERAL HUNDRED MILLIONS of American are going to suffer die economic conditions . . . homelessness, hunger, despair.
We can't save everyone from what has already been put into motion; but we can try to moderate the damage and accelerate recovery . . . but it will still be a long drawn out process.
Either "the people" pressure our government and Congress to re-instill INTEGRITY in both government and business, or things will be bad economically for a decade or longer.