United Nations Radio

The UN Department of Economic and Social Affairs (DESA) is warning that developed countries could enter into a deep recession next year if the current credit squeeze is not addressed.

In its 2009 World Economic Situation and Prospects report released in Doha today, DESA says that world per capita income is expected to decline next year as a result of the global economic crisis.

The report says that the world output will reach a meagre one per cent next year compared to 2.5 per cent in 2008.

Pingfan Hong, the Chief the Global Economic Monitoring Unit in DESA says this growth is too low and implies that wages will decline when taking into account the population growth of 1.2 or 1.3 per cent.

He says a further implication is that the income for poor people whether in rich or low income countries will drop even more given the income distribution factor.

"That suggests that the progress made in the past few years in Africa and other low income countries toward the Millennium Development Goals, particularly Goal One: reduction of poverty would be to some extent hampered by this global economic downturn."

Pingfan Hong says this means that developing countries are suffering from a crisis that actually originated with developed economies.

United Nations Radio, Diane Bailey

(duration: 1'29")