World economic growth is set to fall to just 0.5% this year, its lowest rate since World War II, warns the International Monetary Fund (IMF). In October, the IMF had predicted world output would increase by 2.2% in 2009. It now projects the UK, which recently entered recession, will see its economy shrink by 2.8% next year, the worst contraction among advanced nations. The IMF says financial markets remain under stress and the global economy has taken a "sharp turn for the worse". In another gloomy view of the UK economy, the Institute for Fiscal Studies (IFS) said Britain would be saddled with government debt for more than 20 years. IFS director Robert Chote warned that spending would have to be cut or taxes raised by more than planned to allow public finances to recover. … "We now expect the global economy to come to a virtual halt," said IMF chief economist Olivier Blanchard in a statement.
World growth ‘worst for 60 years’
