Introduction
The global financial crisis will be short, but severe. The World Bank believes it will last from 6 to 18 months. However, developing countries are already in recession with growth falling to 4.5 per cent in 2008 (compared to 6 per cent in 2007). Developing countries will therefore suffer more than industrialised nations as they have less resources available for tackling economic downturns.
The World Bank believes the global financial crisis will be short, but severe.
The World Bank believes the global financial crisis will be short, but severe.
The World Bank said in its latest Global Economic Prospects report that there are signs of a slowdown in emerging economies. And while it is confident that developing countries will be able to weather this storm and emerge stronger, it warned that youth face major challenges going forward and could be hit hardest by job losses and reduced government spending on social programs.
Developing countries will be hit hardest by the global financial crisis.
The global financial crisis will hit developing countries and their youth the hardest.
Developing countries have less money to spend, more debt, and more young people with little job security. Developed nations have more money in the bank (and are therefore better able to weather economic storms) so they can maintain their standard of living without taking drastic measures such as rationing food or cutting wages. In other words: You won’t see a lot of rioting or looting in New York City when times get tough; you’ll see it in Port-au-Prince instead.
Developing countries are already in recession, with growth falling to 4.5 per cent in 2008 (compared to 6 per cent in 2007).
The global financial crisis is set to hit developing countries and young people hardest, according to the International Labour Organisation (ILO).
Developing countries are already in recession, with growth falling to 4.5 per cent in 2008 (compared to 6 per cent in 2007). The ILO predicts that unemployment will rise by around 10m between now and 2010 as a result of the global economic slowdown. This equates to almost one fifth of all youth worldwide who are currently unemployed and looking for work, which could increase significantly if the current downturn turns into a full blown long term depression.
The World Bank says developing countries and youth will be hardest hit by the current global financial crisis.
The World Bank says developing countries and youth will be hardest hit by the current global financial crisis.
According to its latest report, “The Global Economic Crisis: Impact on Developing Countries,” developing countries have already begun to experience negative economic growth as a result of the crisis. The report also predicts that developing countries will continue to suffer from this downturn for some time to come.
Moreover, it says young people are particularly vulnerable because they are more likely than older workers to lose their jobs in times of economic hardship.
Conclusion
The World Bank says developing countries and youth will be hardest hit by the current global financial crisis.
