The IMF or was it world bank grossly misrepresented the economic forecast for UK a few weeks ago. Apparently things are not as gloomy as IMF forecast for Britain, the UK government protested and the IMF did their sums again and come up with a less gloomy prediction but it was still doom and gloom. The government did its own sum, came up with gloomy figures and predictions for the future but it say some green shoots of recovery in the horizon sometime in 2010.

All major financial institution have been coming up with forecast along the same like as the one made by the treasury in UK and the IMF, the latest organisation to weigh in is the European Commission. The commission predicted that the economy in Europe will contract by 4%, twice what it forested earlier this year. The worsening of the global financial crisis, dropping levels of world trade and continuing house value falls had prompted the downward revision of the fortunes of the citizens of EU.

Fingers crossed, lets hope there will be not more reviews later this year saying things are going to be even worst than the 4% contraction in economy.

One of the most worrying aspect of the predictions is the job lose implication. Unemployment in UK hit 2 million recently, additional one million people are expected to lose their job in the next 12 months taking the unemployement figure to 3 million.