Wednesday, January 28, 2009
World Growth Collapses
Econbrowser provides a link to a just-released IMF survey that reports that in November, 2008, world industrial production went from growing at a positive amount to an annual rate of -15%, and world merchandise trade went from growing at a positive rate to nearly a -45% rate, a total collapse probably more dramatic than even during the Great Depression. The IMF has lowered its projection for aggregate world economic growth in 2009 from 2.4% to 0.5%, which if it comes to pass would be the lowest rate of world GDP growth since WW II. We are indeed in a massive world economic crisis of the first order.