Major industrialised economies will suffer the worst slump since the 1930s, according to new research from Deutsche Bank

By Edmund Conway
Last Updated: 10:38PM BST 19 Oct 2008

Worst slump since Great Depression: Bud Fields and his family in their home during the Great Depression in Alabama, 1935. Photo: Corbis
The warning underlines the fact that policymakers have failed to prevent the financial crisis from turning into a full-blown economic slump. It comes as world leaders agreed to hold a summit in New York billed as the “Bretton Woods meeting for the 21st century”.
In its major assessment of the global economy’s health, Deutsche Bank also warned that Britain is even more vulnerable than the US or the euro area, as it predicted that the powerhouses of India and China would fail to support the wider global economy through the downturn.