World Bank Predicts Shrinkage

The World Bank has joined other institutions in forecasting global economic shrinkage in 2009.Emerging markets will see growth drop to 2.1% from the 4.4% prediction of November 2008.A decline in exports,commodity demand and foreign investment is responsible for that.Even should growth resume a better pace,the problems created by shrinkage will continue as far out as 2011,the World Bank thinks.Emerging markets might need as much as 1.3 trillon dollars in aid to cover debt payments and current account deficits.Overall global growth is seen as contracting 1.7%,in the World Bank's view.It would be the first global contraction since World War II.