The IMF delivered an ugly update on the global economy yesterday. In their view, the recession will remain challenging through 2009 with positive change in 2010 though it may not happen until 2011. They are repeating their belief that more stimulus programs will be required (cough, Europe, cough, cough) now. Waiting will be too late. Despite grumbling by the non-believers in the GOP (non-believing in an economic crisis) the US was relatively fast about a plan and China, to the credit of the Beijing government, has been in the lead as well. The foot-draggers will be complaining in a few years about woulda-coulda-shoulda but today they remain smug in their belief that this is not so much their problem, but the problem of others. Good luck with that strategy in the next elections. More from the AP:
"The global downturn guarantees that countries all over the world will be hit with extraordinarily high unemployment rates," Sinai said. "And, with the tremendous number of unemployed people comes the possibility of political unrest."In the UK, despite some claims of "green shoots" in the economy, the Bank of England seemed to back up the IMF report by reporting no obvious signs of change.
Also rising crime as millions more are forced into poverty and out of their homes, he and others said.
"By any measure," the downturn is the deepest since the Great Depression of the 1930s, the IMF said in its latest World Economic Outlook. "All corners of the globe are being affected."
