Brown Shoots


The World Bank is fantastically gloomy about the prospects for the global economy this year:

The World Bank publicly released an update on Thursday [for] 2009, saying it expected the global economy to contract by “close to 3%.” That is sharply worse than the World Bank’s March estimate of a 1.75% contraction. Mr. Zoellick said that while there are signs of an easing of the recession in wealthy countries, developing nations are suffering from a drop in exports, remittances and foreign investment.

….Mr. Zoellick described the global downturn as occurring in “waves.” In the first wave, the financial crisis battered the U.S. and Europe. As markets in wealthy countries dried up, a second wave, hit developing nations. Now a third wave is weakening financial institutions in those countries, which could produce a fourth wave that could further undermine financial institutions in the U.S. and Europe.

Italics mine.  That’s a huge change in just three months.  Zoellick didn’t provide any details about why the Bank’s forecast has plummeted so dramatically since March, but their economists must be seeing some pretty sizeable deteriorations to drive a change this large.

On the bright side, the IMF thinks that the recovery in 2010 will be stronger than they previously thought.  I sure hope so.

Fact:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn’t fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation so we can keep on doing the type of journalism that 2018 demands.

Donate Now