The global club of rich nations that is the Organisation for Economic Cooperation and Development (OECD) has predicted that the economy of its 30 members will contract by 4.3 percent this year.
It says unemployment in the seven richest countries will reach 36 million. The OECD is predicting the British economy will shrink by 3.7 percent this year, the sharpest rate of decline since the Second World War.
It claims unemployment is likely to reach 10 percent here, up from the current 6.5 percent.
The OECD comments in regard to Britain, 'The room for additional fiscal manoeuvre to respond to worse than expected activity developments is therefore limited and new measures would need to be accompanied by detailed and credible fiscal consolidation plans in order to ensure that confidence is not eroded.'
What that translates into is: there is no money left so the government should start making cuts in public spending.
Rising prices hit children
The Save the Children charity has said an extra ten million children are now malnourished globally because of the global rise in food prices.
Millions of children will go hungry due to the impact of the credit crunch on developing countries.
Around 3.5 million children already die each year because of malnutrition. The crisis means that an extra 400,00 could die by the end of the year.