The global economy is in the grips of a deepening

recession that isn’t likely to turn around until sometime next

year, the International Monetary Fund (IMF) said. The IMF,

which had been slow to apply the word to the current

downturn, also released a new definition of global recession.

Overall, the world economy is now expected to

contract 1.3% this year — a sharp reduction from the IMF’s

January estimate of 0.5% growth for 2009 — and then grow

just 1.9% in 2010, well below the global growth rate before

the economic crisis hit.

“By any measure,” the IMF’s twice-yearly World

Economic Outlook concluded Wednesday, “this downturn

represents by far the deepest global recession since the Great

Depression.”

Treasury Secretary Timothy Geithner said that “only

of the 182 economies followed by the IMF are expected

to grow faster this year than they did last year. Some 71 —

including 30 of the world’s 34 advanced economies — are

expected to shrink.”

Ahead of a gathering of Group of Seven finance

ministers and central bankers this week, as well as the spring

meetings of the IMF and the World Bank, the IMF urged

global leaders to keep up the momentum that began at the

Group of 20 summit this month.

The fund is anticipating that G-20 countries will

pursue fiscal-stimulus measures totaling about 2% of gross

domestic product this year and 1.5% next year, but said that

may not be enough.

“It is now apparent that the effort will need to be at

least sustained, if not increased, in 2010, and countries with

fiscal room should stand ready to introduce new stimulus

measures as needed to support the recovery,” the IMF said.

Internet: online.wsj.com (adapted)