The forecast from the International Monetary Fund is out - world growth will be below zero this year. It would probably be the worst performance in most of our life times, according to IMF managing director Dominique Strauss Kahn. He has given a new term to the global financial crisis- the Great Recession.
Just two months ago, the IMF had forecasted the global economy would expand 0.5% this year. But the uncertainties seemed to have move very fast, at the speed of a tsunami, because every nation has now changed their forecast. Poliiticians are no longer saying all is fine and that a recession can be avoided.
The reality is that international economy would shrink for the first time since World World II and trade will decline by most in 80 years. I think Malaysians should brace themselves a long haul. The grim statistics are there and we should start to adjust to the coming scenario. There are fears that some countries would slipped into depression - any country with contraction of more than 10% from peak to trough is said to have fall into this category. Latvia is the first to enter that category. See my comment The Coming Great Recession.