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"Day by day, we are getting closer to the pessimistic scenario"
The United Nations says the world economy faces its worst downturn since the Great Depression.
It expects world economic output to shrink by as much as 0.4% in 2009, due to a slump among developed countries - particularly the US and in Europe.
This would mark the world economy's first year of contraction since the 1930s, the UN said.
The report added there had been complacency about the impact of the financial crisis on poorer countries.
"It seems inevitable that the major countries will see significant contraction in the immediate period ahead and that recovery may not materialise any time soon, even if the bail-out and stimulus package succeed," it says.
[SNIP]
The UN expects developed economies to shrink by up to 1.5%, while developing nations should expand by at least 2.7%.
But because of higher population growth in developing countries, income per capita for the world as a whole is expected to fall in 2009.
