World economy in freefall
By Andre Damon Governments of the world's major economies announced staggering first-quarter contractions in the past few days, as real indicators of the economic crisis continue to worsen. Mexico was the latest country to post a huge decline in the first quarter, announcing Wednesday that its economy shrank by 8.2 percent compared to a year ago. This is the steepest fall since the peso crisis of 1995 brought the country to the brink of insolvency and works out on an annualized basis to a 21.5 percent free fall. This followed Tuesday’s announcement that the Japanese economy contracted 4 percent in the fourth quarter, the worst downturn since 1955, and a stunning 15.2 percent annualized contraction. The Japanese economy had shrunk by 3.8 percent in the previous quarter. Last week Germany announced that its economy had also fallen by 4 percent in the first quarter, the sharpest contraction since the government began keeping quarter-to-quarter figures in 1970. Germany, whose export-le...