Economies of the UK and major developed countries will continue to shrink in 2009

According to projections by the International Monetary Fund, an international organisation that oversees the global financial system, the economies of all developed countries are more likely to continue to shrink substantially this year.

The United Kingdom, which was hit hard by the financial collapse of Iceland, will probably contract the most, as measured by gross domestic product (GDP).

The International Labour Organisation (ILO), a United Nations agency, predicts that 50 million jobs could be lost and 200 million more people could fall into absolute poverty around the globe in 2009. The global nature of the crisis highlights the desirability of a truly international response. The IMF has said the only way for the damage to be contained is through large-scale global action, such as coordinated stimulus programs and mutual co-operation.