Publication: Trade-Related Policy Responses to the Crisis : A Stock Taking
Date
2009-07
ISSN
Published
2009-07
Author(s)
Abstract
The world is facing the most severe
global economic crisis since the great depression of the
1930s. For the first time since World War two, World Bank
projections for annual economic growth show that world gross
domestic product (GDP) will decline 2.9 percent in 2009 and
growth in developing countries will fall to 1.2 percent from
5.9 percent in 2008. Excluding China and India, other
developing nations' economies will shrink on average by
1.6 percent. Net private capital flows to developing
countries will likely turn negative in 2009 a more than $800
billion drop from the 2007 peak. The decline in global
foreign direct investment (FDI) flows that started in 2008
will deepen and spread to the developing world, with overall
inflows projected to fall some 30 percent compared to 2008,
the first time FDI has fallen more than 10 percent in a year
since 1986. The value of remittances, perhaps the most
stable source of external financing for developing
countries, is expected to drop by at least 5 percent this year.
Citation
“Evenett, Simon; Hoekman, Bernard; Cattaneo, Olivier. 2009. Trade-Related Policy Responses to the Crisis : A Stock Taking. PREM Notes; No. 139. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/4c90eefc-1bb7-5f18-82d3-a91ddca2909a License: CC BY 3.0 IGO.”