Global financial crisis set to worse, warns the IMF - Obama criticised, Rudd praised

[Marc]

By David Uren - The Australian - March 20, 2009 01:47am

THE International Monetary Fund has issued a stark warning that the global recession will be even worse than its latest forecast of a 0.5 to 1 per cent contraction, unless strong measures are taken to save the world's banks.

Issuing its fourth set of revised forecasts in less than six months, the IMF said global production had fallen at an unprecedented annual rate of 5 per cent in the December quarter, while the economies of the advanced countries had contracted at an annual rate of 7 per cent.

The IMF said so far there was no sign of improvement.

"Trade volumes continue to shrink rapidly, while production and employment data suggest that the global activity continues to contract in the current quarter," it said.

"Notwithstanding a significant downward revision to the forecast, downside risks continue to dominate."

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Cheers

Marc

[CENTRAL55]

Well, I guess this what many of us have been saying for ages anyway BUT frankly I get no pleasure form seeing my pessimism being taken up by people that the World actually listens to !!! Pleased to see somebody openly dissing Obama's (guess it's a bit mean blaming it on him but he DID want to be the big boss !!) efforts, though IMHO virtually ALL the bailouts Worldwide are simply compounding the problem and solving nothing, and I don't see Ausi's (they're "sort of" praised here) as any different.