Typical street scene in Santa Ana, El Salvador. (Photo: iStock)
October 8, 2008
The world economy is experiencing a major downturn in the face of the most dangerous financial shock in mature markets since the 1930s. The IMF has called for strong and coordinated actions to avoid worse-case scenarios.
The real economy in the United States is facing a downturn. (Michael Wirtz/Philadelphia Inquirer/MCT)
World Economic Outlook
The IMF's latest World Economic Outlook (WEO) projects global growth will slow substantially in the latter part of 2008, before beginning a modest recovery in the second half of 2009.
Growth has been hit by three major shocks—recent turmoil in financial markets, the sharp decline in house prices in advanced economies, and still high commodity prices, as the following animated charts illustrate (click to play).
Inflation has been on the rise . . .
. . . and the shocks are causing a sharp deceleration in economic activity.
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