United Nations 2009 Forecast
The UN predicted that this year’s worldwide economy will drop by 2.6% due to a global economic crisis, greatly affecting many developing countries. This forecast made last January estimated the decline to be only about 0.5%.
The depression began in developed countries, but the UN said the developing states mainly endured rising borrowing costs, reduced commodity values, capital losses, declining world trade and lower remittances from workers abroad.
On a lighter note, the UN report stated that a slight recovery from the decline could occur in 2010 should recent policy operations improve the world’s economy. However, the UN said an extended international downturn is likely to happen if the recession will not be mitigated by these policies.
A depression of 60%, equivalent to $2 trillion, occurred in the US and European market capitalization banks between September 2008 and May 2009. In spite of the write-downs and governments’ immense economic salvage actions, banking setbacks have not been solved.
For 2009, the UN reported that the world trade quantity will go down over 11%. This is the largest drop since the 1930s.
The UN also reported a rapid increase of the unemployment rate that started in 2008 will possibly get worse between 2009 and 2010. If matters are not settled in the next two years, the number of unemployed workers, currently 50 million could increase twofold.
This year, only seven nations will disclose per capita development of 3%. This growth serves as the minimum requirement in reaching considerable decrease in poverty.
Learn what private equity can teach you during the economic downturn.
