The international financial crisis is spreading from developed to developing countries, affecting both financial markets and the real economy. Advanced economies are facing a major downturn, leading to a projected global economic slowdown in 2008. Despite the crisis worsening, emergency measures by central banks and coordinated economic policies are helping prevent a great depression like in the 1930s. While a recession is expected in 2009, stabilizing housing prices, declining oil prices, and contained inflation may mitigate the long-term effects of the crisis.