Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Worldwide Downturn Speeds Up Alarmingly

Analysts don't expect recovery in 2009

By Matt Cantor, Newser Staff

Posted Jan 24, 2009 7:46 AM CST

(Newser) – The global economy is in a faster decline than economists predicted only weeks ago, as the bursting of the biggest-ever real-estate bubble hits real economies in Europe and Asia, killing millions of jobs and shutting businesses, the Washington Post reports. Britain just posted its biggest quarterly slump since 1980, while Germany, China, and South Korea all reported surprisingly steep declines. The numbers call for more government aid and suggest we may not see a recovery before 2010.

Europe’s troubles are “as bad if not worse than those in the US,” the Post notes, and look worse in the last few days. In Britain, long-dominant retail chains are closing or shrinking dramatically; unemployment has reached some 2 million, the highest since 1997. Top European banks have posted huge losses in the past few days. Even China, in the past immune to world financial contagions, posted its slowest growth in 7 years, sparking fears for the economic health of its neighbors and trading partners.

[Images (3)]

[Quotes (1)]

The entrance of a branch of Woolworths, a British institution, is seen in Balham, south London, Wednesday Dec. 17, 2008. The chain has closed its last shop. (AP Photo/Matt Dunham)

An investor scratches his head as he looks at the stock price monitor at a private securities company Monday Jan. 5, 2009 in Shanghai, China. (AP Photo/Eugene Hoshiko)

A pedestrian passes an electronic display sign showing the euro to pound rate in London, Friday, Dec. 12, 2008. (AP Photo/Kirsty Wigglesworth)

« Prev« Prev | Next »Next » Slideshow

In just the past few days, we've had a big downward revision, we're seeing that an even bigger deceleration is on the way than we thought.
- Simon Johnson, former chief economist at the International Monetary Fund

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

World's Timekeepers: Kill 'Leap Seconds'

Debate rages over fundamental shift

(NEWSER) - Countries across the globe are divided—and it's only a matter of time. Some, including Britain and China, want to retain a special "leap second" occasionally added to the calendar to keep atomic clocks in line with the Earth's rotation. The US, France, Germany, and others, however, want to ditch the second . The matter is up for debate in Geneva today, the BBC reports, and barring an agreement among 200 countries, it could go to a vote. But "this is not a technical issue, it is more a diplomatic one," says an official with the International Telecommunication Union. More»

Germany OKs Expanded Bailout

Merkel gets her win; move designed to shore up euro zone

(AP) - German lawmakers have cleared the way for an expansion of the size and powers of the euro zone bailout fund, in a major step toward tackling the bloc's sprawling sovereign debt crisis. A clear majority of lawmakers in Germany's lower house of parliament voted today in favor of expanding the fund's capacities in a vote that was also seen as a test of Chancellor Angela Merkel's center-right coalition. The fund expansion has to be ratified by all 17 euro zone nations to take force, and six more nations must still agree. More»

As Crises Spread, Europe Scrambles for an Answer

Even healthier countries now feeling pinch

(NEWSER) - Financial crises in Greece, Ireland, and Portugal have stoked fears for Italy, Belgium, and the more robust Germany as Europe struggles to find a solution, the New York Times reports. Worry that Germany may have to pay the brunt of bailout costs have prompted the sale of its debt; investor concerns are marked by a euro rapidly sinking against the dollar. More»

Jobless 'Wasteland': Europe, US on Brink of Social Revolt

Recession left 'gaping wounds' says IMF head

(NEWSER) - To those who think the worst of the recession is over, the head of the IMF has this to say: "We are not safe." An astounding 30 million jobs have been lost since the beginning of the financial crisis , three-quarters of those in richer economies, a new report shows. This "wasteland of unemployment," now at 210 million worldwide, puts both the United States and Europe at serious risk of a social revolt, says the IMF's Dominique Strauss-Kahn . More»

Germany OK's Eurozone Rescue Deal

Lawmakers say yes to $1 trillion bailout

(AP) - The German parliament has approved the country's share of the huge euro-zone rescue package. Europe's biggest economy will contribute between $154 billion and $185 billion in loan guarantees. Without Germany on board, the nearly $1 trillion plan could have failed and kept the euro on its relative freefall. The move is another step in trying to ease the financial turmoil roiling markets around the world. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Worldwide Downturn Speeds Up Alarmingly