There is reduction in demand fr engineering goods, real estate prices have fallen down, crude oil prices had hit $120 a barrel. There is shortage of food in most pat of the world and the cost of food has increased as well. Many economies have reported increase in inflation rate all the economic measures have failed to curtail the rise in inflation rates. During Sep ’08, it was predicted that UK will fall into recession and in Nov ’08, it was officially announced that Germany has fallen in to economic recession traps. Shortly after wards, Japan economy has clearly shown signs of stagflation and unemployment in that country has been on rise. The projections for this year 2009 have been bleak also. The growth projection has been reduced from last year’s actual figure and demands for goods and services declined significantly. Is there any end to these negative signs? Will it change at all?