News that interested me

Sarkozy seeks peace role in Africa from Financial Times

IMF dampens hopes of aid to Zimbabwe from Financial Times

Nigeria: Opposition gang up against gov’t from Africa News

Are Coups d’Etat Making a Comeback by Deo Lukyamuzi at African Arguments

Duncan Green on the IMF’s gloomy forecast

“IMF finally calls it – the world economy will shrink in 2009, and developing countries are hit harder than we thought

Every revision of global growth predictions has been heading towards zero, and now the IMF, in its report to the G20 finance ministers’ meeting last weekend, has taken the next step. It predicts the world economy will shrink in 2009, (by minus 0.5-1%) for the first time in 60 years. It’s pretty safe to assume that this won’t be the last downward move.

Take a look at the chart. Developing country growth is the only positive bar left (though well below the rate of population growth), but it was the largest downward revision in the forecast, marking the increasingly rapid contagion via finance, trade, remittances, commodity prices etc. In terms of the difference between growth in 08 and 09 only Japan takes a bigger hit than the developing world.”

From Poverty to Power by Duncan Green » Blog Archive » IMF finally calls it – the world economy will shrink in 2009, and developing countries are hit harder than we thought.