GENEVA — Despite massive stimulus packages being injected into economies around the world, the global economy is projected to contract for the first time in 60 years in 2009 by 0.5 to 1 percent, an International Monetary Fund report said Thursday.
The IMF said major advanced economies will post sharper declines in output of 3 to 3.5 percent and emerging economies will grow by 1.5 to 2.5 percent, while the U.S. is now forecast to contract by 2.6 percent and European Union countries by 3.2 percent.
The revised global projections reflect a marked revision from late January, when the agency expected the global economy overall to expand by 0.5 percent.
“Turning around global growth will depend critically on more concerted policy actions to stabilize financial conditions, as well as sustained strong policy support to bolster demand,” the report said.
Giving an even more dire prediction, Heiner Flassbeck, head of a task force of economists at the United Nations Conference on Trade & Development, said during the release of a report on the global economic crisis that world output could contract by between 1 and 2 percent.
Flassbeck attributed the continued sharp contraction since late last year to the subprime credit crisis having set off a burst of speculation bubbles in the stock, commodity and currency markets.
Supachai Panitchpakdi, UNCTAD secretary general, said the G-20 leaders who meet in London on April 2 need to act fast to increase demand and help rehabilitate global trade and prevent it from dropping off rapidly.
Meanwhile, trade finance experts from major commercial banks and international financial institutions meeting in Geneva under the auspices of the World Trade Organization put the shortfall in trade finance at around $100 billion, up from a $25 billion shortfall in November, sources said.
The same sources said the World Bank and its International Finance Corp. are looking at offering $10 billion to $11 billion in funding during the G-20 summit to boost trade finance liquidity. With governments in rich and emerging nations under heavy pressure to bail out troubled companies, trade experts from the World Bank and the Organization for Economic Cooperation urged countries not to resort to protectionist policies.
A World Bank trade note said that since Nov. 17, G-20 nations have implemented 47 measures to restrict trade, including some in textiles. Argentina imposed nonautomatic licensing requirements on a host of goods, including textiles, shoes and leather goods, while Indonesia ushered in requirements that five categories of goods, including apparel, would be permitted in only five ports and airports.
Moreover, China and India had increased the rebate on the duty drawback system for exporters, it noted.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews