IMF sees deeper 2009 decline, weak 2010

[Sense&Guts]

WASHINGTON (AFP) - - The International Monetary Fund Wednesday forecast the global economy will contract a punishing 1.3 percent this year because the financial crisis is proving more entrenched than expected.

"The global economy is in a severe recession inflicted by a massive financial crisis and acute loss of confidence," the IMF said in its semi-annual World Economic Outlook (WEO) report.

The IMF warned the outlook was "exceptionally uncertain," with risks weighing on the downside, in its assessment that the world economy was sliding into "the deepest post-World War II recession by far."

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