'Deeper' recession ahead says IMF

Jared Hance

12:51 Apr. 22nd 

The IMF had predicted back in January that world output would decrease by .5% in 2009; an estimate that they now say was too low of an estimate, with 1.3% appearing to be a more accurate measure at the end of this year. Along with this, several prominent countries, UK, Germany, Japan, are expected to see significant economic downfalls that range to an upward of 6.2% of GDP shrinkage. The forecast for next year are not much better, with no growth forecasted at all. The IMF has dubbed the current situation the worst post WWII recession and that the only way out will arise out of the developing countries of the world and their recovery from the recession. The U.K. will face challenges in this economic environment, with their unemployment rising to 10% by the end of 2009 and the estimated growth in deficit to match nearly 11% of their GDP.

            It’s rather interesting to see how people react to the economic downturn, especially in their tendency to believe that it is a situation that should be quickly remedied by the President of the U.S., especially given how global the problem is. There will be no easy road to recovery for this recession, nor will it be a fast one. Rather, we as a people are going to have to go through a period of economic strife and struggle in order to get back to the level of prosperity that we used to know.