Financial crisis deepens, global economy to shrink 2.6 percent

The United Nations has predicted the global economy will shrink by 2.6 percent this year, as the global financial crisis deepns and unemployment threatens to reach the 50 million mark.

The United Nation’s World Economic Situation and Prospects 2009 report has predicted a global economic contraction of 2.6 percent, as the global credit crunch continues to strain the economy worldwide.

The  U.N. Department of Economic and Social Affairs (DESA) has forecast unemployment will hit 50 million, with reports the figure could “easily double if the situation continues to deteriorate.”

DESA has urged all countries to work together to solve the global financial woes, claiming if there was a more co-ordinated response to the crisis, the recovery would be stronger and swifter.

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