Economies of major developed countries will shrink in 2009

Snapshot for February 18, 2009

Economies of major developed countries will shrink in 2009

by Tony Avirgan

The U.S. economy is not suffering alone. According to projections by the International Monetary Fund, an international organization that oversees the global financial system, the economies of all developed countries are also likely to shrink substantially this year. The United Kingdom, which was hit hard by the financial collapse of Iceland, will probably contract the most, as measured by gross domestic product (GDP). (See Chart)

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The International Labor Organization (ILO), a United Nations agency, predicts that 50 million jobs could be lost and 200 million more people could fall into absolute poverty around the globe in 2009. The global nature of the crisis highlights the desirability of an international response. The IMF has said the only way for the damage to be contained is through large-scale global action, such as coordinated stimulus programs.