World suffering from worst economic slump for 20 years
The world is suffering the worst economic downturn in 20 years, according to the latest forecast by the Organisation for Economic Co-operation and Development.
The OECD - which comprises the world's richest nations - expects its members' economies to contract by a combined 0.3 per cent in the second half of this year.
Its concerns about a global downturn were heightened after the terrorist attacks in the United States on September 11 and the following war in Afghanistan.
'The economic slowdown that started in the US last year and spilled over to other countries has turned into a global economic downturn which has left few countries or regions unscathed,' the OECD said. 'World economic growth will be reduced to levels not seen since the early 1980s.'
The forecast was made in the OECD Economic Outlook report released in Paris yesterday.
China's economy is forecast to grow by 7.4 per cent this year and 7.2 per cent next year. The mainland is largely insulated from the global downturn by its mostly closed economy and strong domestic demand.
