As the international financial crisis has begun to spread from financial markets to real economy，advanced economies are entering a major downturn，global economy is projected to slow substantially in 2008. Because the financial crisis continues to broaden and intensify，global economic growth is expected to deteriorate and fall into a recession in 2009. However，as housing prices tend to stabilize，oil prices decline，inflation pressure seems contained，the world’s central banks have been administering emergency measures and co-ordination in their economic policies，world economy is unlikely to fall into the great depression in 1930s.