World economy slumps

The world economy already faces an economic downturn worse than the Great Depression.

But this could be followed by another “possibly much worse downturn”, according to the Economist Intelligence Unit (EIU).

World governments are giving trillions of dollars in stimulus packages to help prop up their economies.

Sovereign debts that they are racking up may push the global economy into a second recession, the EIU warns.

Earlier this week, the International Monetary Fund (IMF) said the world economy would shrink at its fastest pace in decades, raising fears it will be the worst recession since the 1930s Great Depression.

The EIU now says there is a risk of a subsequent recession, driven by a debt crisis from governments with weak balance sheets. – BBC.