In contrast, “even with determined steps to return the financial sector to health and continued use of macroeconomic policy levers to support aggregate demand, global activity is projected to contract by 1.3% in 2009,” the report stated.
“Moreover, the downturn is truly global: output per capita is projected to decline in countries representing three-quarters of the global economy. Growth is projected to re-emerge in 2010, but at 1.9 percent it would be sluggish”, the report continued.
The report also projects that the economies of Latin American and Caribbean countries will shrink by 1.5% as a result of the financial turbulence, slumping demand from advanced economies, especially the United States which is the largest trading partner for the region, and the resulting fall in commodity prices.
Guyana’s inflation rate for 2009 will be a modest 3.639%, and 4.975% in 2010, the IMF has projected.