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IMF report on worldwide crisis: it’s gonna get worse

16 April, 2009

from the BBC IMF sees long and severe slowdown

According to the International Monetary Fund, we are in for a prolonged and severe economic downturn. It seems that there are three kinds of slowdowns: recession, recession tied to financial downturns, and synchronised recessions .

the typical recession lasts for a year, with a recovery lasting five years.

But, the report says, recessions linked to financial crises, such as the current one, tend to last much longer.

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A synchronised slowdown – where many of the world’s economies are in recession at the same time – lasts one and a half times longer than a typical recession.  (emphasis mine)

And that’s where we are – a synchronised economic recession – the worst kind.  Whatever EconObama says about seeing “a glimmer of hope” (which isn’t even as good as “a light at the end of the tunnel”), it ain’t true.  Jobless rates are high.

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