IIF forecasts global contraction in 2009

The Institute of International Finance is the first major global institution to forecast a full-scale global contraction in 2009, predicting that the economy would shrink by 1.1%. IIF chief economist Philip Suttle says, “This is the worst period since the interwar years…” Suttle also expects the rich economies will contract by 2.1% – the worst peacetime output since the 1930s. Private flows of capital into the emerging world are set nearly to dry up in the next year, the IIF predicted, dropping from $928.6 billion in 2007 to $465.8 billion in 2008, and then to $165.3 billion this year. Current account deficits in emerging Europe will more than treble in the coming year, from $30 billion in 2008 to $117 billion in 2009. Asia is likely to suffer a worse downturn than during the Asian financial crisis, he warns.

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About Caracas Gringo

Representing less than 0.00000000001515152% of the world population as of 31 December 2011.
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