World Bank Downgrades an Already Gloomy Forecast

From the Wall Street Journal:

The World Bank publicly released an update on Thursday. . . saying it expected the global economy to contract by "close to 3%." That is sharply worse than the World Bank's March estimate of a 1.75% contraction. Mr. Zoellick said that while there are signs of an easing of the recession in wealthy countries, developing nations are suffering from a drop in exports, remittances and foreign investment.

Yikes! On the bright(?) side, the forecast indicates that the developed economies should be spared the worst of this and they expect the 2010 recovery to be more robust that previously predicted. The downside: it is the developing economies that are really getting clobbered. Not good for the citizens therein, nor does it bode well for global stability.

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