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Around the World, the Signs Of Slowdown Spiral Outward
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Brazil illustrates how indiscriminate the financial crisis has been in claiming victims. Unlike many nations, Brazil's economy is relatively balanced, and its foreign borrowings have been relatively modest. Yet the country has still been squeezed by recent events. On Thursday, it eliminated its tax on foreign investments to remove an obstacle to capital inflows and bolster its currency, which has dropped 17.5 percent against the dollar this month.
But if emerging economies are hoping for assistance, they might have to wait while industrialized countries wrestle with their own problems.
In Europe, investors were starting to digest the reality of the economic slowdown. The news that Britain is on the brink of recession contributed to a 5 percent drop on the London stock market. The pound dropped to $1.58, the first time it has dipped below $1.60 in five years.
"This figure is worse than we expected, with the slowdown spreading right across the economy," said Richard Lambert, director general of the Confederation of British Industry. Manufacturing, construction and retail were all hit.
"This is the day the recession became real," said David Cameron, the leader of the opposition Conservative Party. "We will get through this, but we need change to support small businesses; we need change to bring a more balanced economy."
Prime Minister Gordon Brown said he wanted the help of other countries. "This is a global financial recession, and we're fighting it every way we know how, working with other countries, trying to get the banks moving here in Britain," he said.
Post correspondents Mary Jordan in London and Rama Lakshmi in Mumbai and staff writers Cecilia Kang and Kendra Marr in Washington contributed to this report. Blaine Harden reported from Tokyo.
