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Global economy heads for zero growth

16 January 2009 14:38 (UTC +04:00)

The world economy is heading for zero growth in 2009 as a deepening recession in rich countries slows the sale of consumer goods and raw materials from developing nations, the United Nations said Tuesday.
The global body’s trade and development office, UNCTAD, said it has downgraded its forecast for this year after a worse-than-expected economic performance during the fourth quarter of 2008.
The U.S. economy could shrink by as much as 1.9 percent, while Euro-zone economies will contract by up to 1.5 percent, according to a 160-page report prepared by UNCTAD.
Japan is expected to see negative growth of between 0.3 and 0.6 percent, while Mexico appears likely to tip into the red zone as well, with a contraction of 1.2 percent being the worst-case scenario.
Major developing countries also will suffer, with China’s growth predicted to slow to 7 percent and India’s to around 6 percent. The world’s poorest economies will grow by less than 5 percent. AP