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'Global economic activity is falling - with advanced economies registering their sharpest declines in the postwar era - notwithstanding forceful policy efforts,' the International Monetary Fund said in an interim update of its world outlook.
It slashed its forecasts to a global contraction of 0.5 to 1.0 per cent, sharply lower than the 0.5 per cent growth given only on January 28.
Advanced economies are expected to suffer 'deep recessions' in 2009, shrinking between 3.0 and 3.5 per cent, while growth will slow sharply in developing countries.
The IMF also warned that the Group of 20 developed and emerging major economies had not done enough to fight the recession.
'Country responses to the global crisis are in an early stage... measures are still needed to restore financial stability,' the IMF said, adding that a projected 2010 recovery depended on comprehensive policy steps. -- AFP
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