US economy bad. Others worse.

While currently the economic woes in the US seem to be worse than in the EU, the IMF predicts that among developed nations, UK will be the worst hit with a contraction of 2.8% in 2009. The EU overall will shrink by 2%. The US will shrink by a "mere" 1.6% - that's roughly $220 BN reduction in the US GDP. Moreover, the IMF has warned that the UK is so structurally unsound that it will remain in debt for 20 years.

Of course, all this pales in comparison to Iceland. Iceland has become the first Western nation to get IMF help since 1976. With 17.1% inflation and outstanding bank debt that is six times its GDP, Iceland is expected to see 9.6% contraction in its GDP in 2009 and at best no growth in 2010. Their Prime Minister has now been forced to resign. Here's a summary of the timeline of key events in Iceland.

Meanwhile, while many developing economies have been ravaged by a combination of the drop in demand from Western economies and the drop in oil prices (a mixed blessing, depending on where you are), they are expected to continue to grow, although their growth will slow substantially.