Global Economy Will Shrink by 2.75% According to OECD

In Financials on March 31, 2009 at 15:19

global-economyGlobal economy is expected to contract by 2.75% this year according to OECD (Organization for Economic Co-operation and Development). American, Japanese and Euro-zone economies are expected to shrink by 4%, 6.1% and 4.1% respectively while world trade is going to fall by 13.2%. OECD also reports that “The world economy is in the midst of its deepest and most synchronized recession in our lifetimes, caused by a global financial crisis and deepened by a collapse in world trade”. Economic recovery will appear during 2010 when global growth will approach 1.2%, only under the condition that governments act soon and collectively. Moreover, the OECD urges Central Bankers to cut interest rates to zero levels to boost more credit into the ‘dry’ markets and get the economy moving again.

Complementary to monetary loosening, OECD suggests that countries able to undertake fiscal manoeuvre like Germany, Canada, Australia, Netherlands, Switzerland and the Nordic countries, should do so asap in a co-ordinated manner.

OECD Chief Economist Klaus Schmidt-Hebbel embraced Geithner’s plan to remove banks’ toxic assets from their balance sheets but mentioned that it still faces “significant risks” lending it a probability of success of 50%.

Despite OECD’s pessimism, it rejects any scenarios of recession turning into a 1930s depression due to the high vigilance of all governments and their respective measures employed to tackle this global crisis.

Finally, unemployment levels will ‘touch’ double digit rates and they will keep growing during 2010. Central and Eastern Europe will struggle with their external payments and domestic banking “intensifying the global downturn and raising the demand for external funds”.

A rather pessimistic report but to the point. Things will get worse before they get better. OECD tries to prepare the ground for the G20 summit in London and convince the leaders to take immediate co-ordinated action.

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  1. G20 Summit in London;Prayers & Good Wishes, 2 April 2009; God Bless

    Prayers are amazing. This precious gift is always with us

    Let us all pray for the G20 Summit in London where the Leaders of the World accompanied along with Strategic Decision Makers meet

    That they form a coalition; a mutual understanding based upon a Vision for the Global Economy

    A Vision that is based upon Values Based Principles and grows from strength to strength to overcome the challenges being faced globally with Wisdom

    Seek the grace of God to fill the Universe with a Vision of Happiness & Wisdom always
    When the World prays together; the wishes seek to manifest

    When the World is Happy, we are all Happy. In one another’s Happiness is our true Happiness; Development; Prosperity & Progress

    Let us gratefully acknowledge; appreciate and express our sincere thanks to God for everything always;

    Protocol; Etiquette, Be Appreciative; Be Grateful; Be Meaningful; Be Purposeful; Be Respectful and Be Responsible always Please

    Express thanks to God time and again always, For the Health and Wellness,
    For the Wonderful Families; Friends, For the Inspiration & Wisdom, For Fulfilling our Needs, For Showing us the way, For the Courage, For the Natural Resources,
    For always being near us, For the lamp of peace; love; faith and hope that glows in all our hearts, For God’s graceful and loving presence, For God’s Blessings,
    For Guidance through the challenges, For the Trust in us, For knowing what is best for us always, For permitting the Love and Light of God to shine through our lives

    Prayer; May One and All be Appreciative; Grateful and Thankful

    Happiness

    May Happiness be showered on One and All; May One and All be Healthy;

    May One and All be Loved & Respected; May One and All have Well-being

    May One and All realize that their Happiness is linked to others Happiness;

    May One and All recognize that when the World is Happy, they are Happier;

    May One and All discover the true meaning of Life is that Life is Precious

    May One and All be Resourceful & Talented; May One and All Achieve and Excel;

    May One and All be Considerate; Creative; Meaningful; Purposeful and Responsible;

    May One and All Love Nature; The Environment & Humanity;

    May One and All Respect One Another; May One and All Inspire One Another;

    May One and All realize that they each have a very meaningful and special purpose in Life;

    May One and All believe that they are the precious Gems of this Universe;

    May One and All realize that Life is Beautiful; Precious, Meaningful and Purposeful;

    May One and All be a Symbol of God’s Loving Love and Light; Radiating Joy for others;

    May One and All be Blessed with Happiness, Prosperity; Progress& Wisdom always

    Thank you for your prayers for the World; they are immensely appreciated and reciprocated with utmost appreciation and gratitude

    Trust in God and Faith in Ourselves, May God Bless You and Your Families with a Vision of Happiness and Wisdom always

    When the World is Happy, We are all Happy; In one another’s Happiness is our true Prosperity, Development and Greatest Happiness

    May Universal Appreciation; Happiness; Consideration; Compassion; Respect; Peace; Love; Cooperation; Inspiration; Gratitude; Economic Development, Stability; Prosperity, Progress & Wisdom prevail always

    Love & Light;

    God Bless,

    Vashi

    ©2009 Vashi Ram Chandi

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