The United Nations has forecast the world economy to shrink 2.6 per cent in 2009, downgrading the already-pessimistic estimate made five months ago. "The world economy is expected to shrink by 2.6 per cent in 2009, according to the pessimistic scenario of the forecast presented in January," the world body said in a mid-year report by UN Department of Economic and Social Affairs (DESA). In January, the UN had forecast that the world economy would shrink 0.5 per cent this year. Rob Vos, Director of DESA's Development Policy and Analysis Division, told a news conference on Wednesday that "We are less sanguine than some observers about possible green shoots emerging. If they are there they don't give much sign of being spring time. It is still very wintry landscape." With its increasing impact both in scope and depth worldwide, the global financial crisis poses a significant threat to world economic and social development, including the fulfilment of the Millennium Development Goals and other internationally agreed development goals, according to DESA. The report predicted that with a coordinated, development-oriented policy scenario, the world economy would recover to an annual growth of 4-5 per cent in 2010-2015, led by a robust growth of 7 per cent a year in developing nations. "This is in contrast to the uncoordinated scenario in which developing countries would recover at only half that rate," DESA said.