By Mark Memmott
Saying that the world economy is "deeply mired in the most severe financial and economic crisis since World War II," the United Nations just dramatically revised its economic forecast for 2009.
And the revision wasn't in a good direction.
The U.N. now expects global economic output will shrink 2.6% this year. As recently as January, it had been expecting a much less severe 0.5% decline.
Also in its report, the U.N. warns that:
The crisis, if it prolongs much further, likely will also bear profound consequences for global security and stability. ...
The global policy response has been unprecedented, including monetary, financial and fiscal measures to stabilize financial markets and revive global growth. However, greater efforts are needed, including through better policy coordination and larger financial transfers to developing countries.
Though the global outlook may be grim, a poll of National Association of Business Econmics members shows they're expecting the U.S. economy will emerge from recession later this year.