Global activity will contract by 0.5 to 1 percent on an annual average basis, the first such fall in 60 years, the IMF said in an analysis provided to the Group of 20 (G20) industrialized and emerging market economies.

Advanced economies will suffer deep recessions in 2009, while the United States will contract 2.6 percent, the assessment said.

Capital injection into IMF at G20

Responding to the question of capital injection into the IMF at the upcoming G20 summit in London, Portugal said the IMF had enough resources to manage the problems the world economy is facing now.

From the start of economic crisis, our credit capability is US$250 billion, among which we have used US$50 billion, so we still have US$200 billion left, said Portugal, adding that we hope to prepare for the worst to come, if more countries need our financial support. So far, we have got some commitments on capital injection from some countries.

He said that Japan is the first country to make such commitment. The IMF has signed the agreement with Japan, which has pledged to add US$100 billion to IMF's funds. We can lend the money out, said Portugal.

Ahead of the G20 summit, the United States is calling for trebling of the IMF's resources to help countries facing financial and economic problems.

In preparation for the summit, finance ministers and central bankers from the G20 agreed last weekend to boost the IMF's funding capacity, but gave no figures.

(Xinhua News Agency March 22, 2009)