World economy to shrink 2.6 pc in '09: UN

New York, May 28: World economy may shrink about 2.6 pc in 2009 says United Nations forecast, downgrading the already-pessimistic estimate made five months ago.

"The world economy is expected to shrink by 2.6 percent in 2009, according to the pessimistic scenario of the forecast presented in January," the world body said in a mid-year report by UN Department of Economic and Social Affairs (DESA).

UN had forcast that the global economy would shrink 0.5 pc in Jan. DESA said that the ongoing global economic crisis is posing serious threat to the world economic and social development, including the fulfilment of the Millennium Development Goals and other internationally agreed development goals, according to DESA.

The report predicted that with a coordinated, development-oriented policy scenario, the world economy would recover to an annual growth of 4-5 per cent in 2010-2015, led by a robust growth of 7 per cent a year in developing nations.

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