Washington  - The World Bank on Tuesday warned that a financial crisis striking the global economy could spark the worst worldwide recession since the Great Depression.

The global development bank slashed its previous estimates for global growth to 2.5 per cent in 2008 and 0.9 per cent in 2009, well below the 3-per-cent rate typically considered the dividing line between global growth and contraction.

"The financial crisis is now likely to result in the most serious recession since the 1930s," said the World Bank's chief economist Justin Lin, as the group released its annual report on the global economy.

The current economic slowdown was notable for both its length and breadth across all regions of the world, leading to a contraction in the most wealthy nations and a sharp slowdown in emerging countries, the bank said.

The financial crisis has cut access to credit in advanced and developing countries, while energy, food and metal price drops have hurt poorer nations' exports.

The forecasts are dramatically lower than the 2.2-per-cent growth in 2009 predicted by the bank's sister organization, the International Monetary Fund.

Lin urged all countries with the ability to increase government spending to use it to boost domestic demand. But he warned that wealthy nations must invest in projects that will spur long-term growth, such as by investing in clean energy or infrastructure. (dpa)