Tuesday, 25 November 2008A leading international economics organization warns many of the world's major economies could soon suffer the worst recession since the 1980s.
The Organization for Economic Cooperation and Development is forecasting declines in the United States, Europe and Japan.
The organization's chief economist, Klaus Schmidt-Hebbel, also says the number of unemployed across OECD member economies may rise by 8 million.
Also Tuesday, the World Bank said it expects China's economic growth will slow next year to its lowest rate in nearly two decades.
The bank today cut its 2009 growth forecast for China to 7.5 percent because of the global financial crisis, nearly 2 points lower than the expected rate for this year (9.4 percent).
World Bank economist Louis Kuijs says China's downturn will worsen in the first half of next year because of weakening export demand.
He says that while China cannot avoid the global financial crisis, it can take steps to minimize its impact on the country.
China has already announced plans for a multibillion dollar stimulus plan to boost its economy. The plan calls for spending on construction, tax cuts and aid to the poor and farmers.
On Monday, Britain announced its own economic stimulus package to combat the effects of the financial crisis there, while the United States said it could take more measures to repair its shattered financial system.
Britain's finance minister, Chancellor of the Exchequer Alistair Darling, announced a $30 billion package to get people spending again.
He also said Britain's economy could shrink by as much as one-and-a-quarter percent next year.
The U.S. Treasury and U.S. central bank are expected to announce Tuesday a new lending program to make more financing available to American consumers.
Asian markets soared Tuesday in reaction to the latest actions by treasury officials in the United States and Britain.
By VOA News
25 November 2008
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Tuesday, 25 November 2008
Economy
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