Central Banking

IMF sees global economy shrinking in 2009

The world economy is set to shrink in 2009, the head of the International Monetary Fund (IMF), said on Tuesday.

Dominique Strauss-Kahn, the managing director of the IMF, said: "The Fund expects global growth to slow below zero this year, the worst performance in most of our lifetimes." Strauss-Kahn's comments follow the Fund's forecasts of 0.5% growth this year, made at the end of January.

"Continued deleveraging by the world's financial institutions, combined with a collapse in consumer and

To continue reading...