The global economy is expected to contract by 2.7 percent in 2009 after a two percent growth in the previous year, the United Nations Conference on Trade and Development (UNCTAD) states in its Trade and Development Report 2009 published on Tuesday, September 8.
According to the report, in developed countries economic contraction is expected to be 4.1 percent this year after a 0.7 percent growth in 2008, while transition economies are projected to contract 6.2 percent following a 5.4 percent growth last year. At the same time, developing countries are likely to suffer a deceleration of growth to 1.3 percent in 2009 after rising 5.4 percent in the previous year,
In addition, UNCTAD has called upon governments and central banks in its report to take rapid and strong proactive measures to break the spiral of falling wages, prices and demand, and to revive the financial sector's ability to provide credit for productive investment to stimulate real economic growth.