The world economy continues to be buffeted by the burgeoning downdraft of the financial crisis
and volatile commodity prices. As such, the outlook points to a major downturn for the global
economy, with growth falling to its slowest pace since the 2001–02 recession. However, authorities
around the world have taken further, massive, and increasingly coordinated corrective actions. The
central scenario in the World Economic Outlook anticipates that these will be successful in stabilizing
financial conditions. However, it will take time, under any rescue plan, to restore the proper
functioning of credit markets. For the United States, our baseline projection is that recovery will
begin in the second half of 2009, and will be more gradual than previous recoveries, because of the
exceptional nature of the asset price adjustments taking place. Overall, growth in the advanced
economies as a whole will also be close to zero at least until the middle of 2009.
and volatile commodity prices. As such, the outlook points to a major downturn for the global
economy, with growth falling to its slowest pace since the 2001–02 recession. However, authorities
around the world have taken further, massive, and increasingly coordinated corrective actions. The
central scenario in the World Economic Outlook anticipates that these will be successful in stabilizing
financial conditions. However, it will take time, under any rescue plan, to restore the proper
functioning of credit markets. For the United States, our baseline projection is that recovery will
begin in the second half of 2009, and will be more gradual than previous recoveries, because of the
exceptional nature of the asset price adjustments taking place. Overall, growth in the advanced
economies as a whole will also be close to zero at least until the middle of 2009.
