The world economy is close to recession and developing nations will suffer the most severe impact, according to yearly prognostications published by the World Bank. The GNP of developing nations will grow by 2.9% this year, but only 1.1% in 2002, according to the report. If China, with annual growth approaching 10%, is removed from the mix, the developing world may be in recession in 2002. The report noted that "what makes this situation particularly risky is that, for the first time since 1982, the US, Europe and Japan are registering deceleration at the same time." The World Bank prescribed the same old medicine - increased "free" trade. The world economy grew by 4.5% in the 1970s, before free trade policies took hold, then grew by 3.5% in the 1980s and 2.5% in the 1990s, after the free trade model was in full bloom. Meanwhile, the Bank of Mexico predicted that steep declines in the industrial and service sectors would result in increased unemployment next year. Bancomer predicted a 3.5% decrease in industrial exports to the US this year. Manufacturing and services account for 90% of the Gross National Product of Mexico.