Good news, everyone! World bank predicts worsening global recession

Although Goldman Sachs is predicting record bonuses will be paid out in their best year ever, the rest of the world is not going to be as lucky.

The LA Times is reporting that the global economic downturn is even worse than originally thought, with an expected contraction of 2.9% in the world’s economy. The previous prediction was 1.7%. And growth is expected to be at 2%, down from an original prediction of 2.3%.

Developing countries saw 8.1% growth in 2007 and 5.9% in 2008. Poorer countries are also suffering from a delayed fallout, as economic aid falls in response to the ailing markets. From the LA Times:

“‘Unemployment is on the rise, and poverty is set to increase in developing economies, bringing with it a substantial deterioration in conditions for the world’s poor,’ the World Bank said. While the world is set to return to growth in the second half of 2009, a recovery will be subdued, the report said.”

Crude oil also fell sharply on Monday, down to about $68 a barrel, on news that the recession ”has been much deeper and broader than previous crises” and recovery is “unusually uncertain.”