The Institute of International Finance, the Washington-based association representing more than 375 of the world's major banks and financial institutions, has projected the world economy would shrink 0.4 per cent in 2009, after 2.0 per cent growth this year.
In a press release issued today, the institute says that, “the weakening economy will increase credit losses, continuing to put pressure on bank capital. This underscores the point that capital injection alone will not be sufficient to strengthen the banking system until the economy and financial markets stabilize.”
The US economy, the world's largest and the epicentre of the financial tsunami, would shrink 1.3 per cent in 2009 after growth of 1.2 per cent this year, according to the IIF projections. >> more
Otherwise said, it's a global recession in 2009.
In the apparent absence if any specific mention of Australia, it we be interesting to see how we fare in comparison.
What's your view ...