A new report from UN, “World Economic Situation and Prospects 2009”, indicate the bad future outlook for the world’s economy in 2009, where the financial crisis in the US and Europe effect the whole world’s economy negatively. According to the CFO of UN’s development- and analytical department, the global GDP will change -0.4% at the worst to 1.6% at the best. This will mean that the world economy start to decrease for the first time since 1930! When a reliable source such as UN releases a report like this, the continuation of the crisis is a fact. Comparing with the numbers of 2007 and 2008, with an increase of 3.8% and 2.5%, the situation is pretty clear, 2008 is not going to be a good year.
The UN report also highlights central deficits in the international financial system, and that developing countries expose themselves to risk by trusting the US Dollar as a reserve currency. Furthermore, the repost also encourage more financial support from IMF and The World Bank, improved international coordination regarding exchange rates fundamental reforms of the financial regulation systems.
In my point of view, to summarize this report in more concrete and understandable words, the economical systems that have existed the recent century are about to collapse and economic evolution and wealth is not going to be something to take for granted. Maybe it is time for a more controlled market economy รก la Keynes?
