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Economic Forecasts: This Year Down, 2010 Up

A key economic report says the global economy will be worse than first estimated this year, while a separate study says 2010 will be better than expected.

Thursday's World Bank study says the global economy will shrink almost three percent this year, which is significantly worse than earlier estimates.

Bank experts say the downturn is likely to hit poor nations hard, even though financial markets in wealthy nations are stabilizing.

At the same time, news reports say the International Monetary Fund is raising its estimate of global economic growth for 2010.

The reports on Bloomberg and Reuters quote unnamed sources saying the IMF is raising next year's growth prediction to hit 2.4 percent. That is a half a percent higher than earlier studies predicted.

The predictions come just ahead of a meeting of G8 finance ministers in Italy where the economic crisis tops the agenda.

Some information for this report was provided by Reuters.