IMF warns recession will be ‘unusually long-lasting’

More than half of the world’s countries have been plunged into recession by the credit crunch, a higher proportion than at any time since 1960, according to the International Monetary Fund, which warns today that the downturn is likely to be “unusually severe and long-lasting”, and will starve developing countries of resources.

As the world’s finance ministers prepare to descend on Washington for the IMF‘s spring meetings next week, it offers a stark warning to politicians who claim to have spied green shoots.

“The combination of financial crisis and a globally synchronised downturn is likely to result in an unusually severe and long-lasting recession,” the IMF says, in two key chapters of its twice-yearly World Economic Outlook, published today.

The IMF was given a major role in rebuilding the global economy after the crash at the G20 summit, when world leaders agreed to triple its resources, to $750bn (£503.4bn).

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