World economy to shrink

The World Bank has said that the global economy will shrink this year for the first time since World War II.



BBC reports said the bank\'s forecast is gloomier than other estimates, which still foresee some growth.



The bank said by the middle of 2009, industrial output could be as much as 15 percent lower than 2008, while trade may record the biggest decline in 80 years.



It added that developing countries face a financing shortfall of up to US$700B this year.



The sharpest trade losses are expected to be in East Asia, where there are many large exporters.