The total world economic output will fall this year for the first time in over 60 years, experts predict.

A report by the Centre for Economics and Business Research (Cebr) published today suggests that with most of the advance economies already in recession or on the brink it’s hardly surprising 2009 will see a decline in global economic output.

Cebr expects the world economy will decline 0.4 per cent this year – measured at market exchange rates.

The decline will mark the first time the total volume of goods and services produced worldwide has decline since 1946, when the disastrous effects of the second world war became apparent.

Today’s report estimates that the combined value of announced fiscal stimulus measures around the world amount to around £1.8 trillion (£1.25 trillion).

It also suggests the Chinese economy will still be heavily reliant on export demand resulting in economic growth falling below the six per cent mark in 2009.

Faced with increasing divergence of economic conditions among the euro member countries, the euro is also likely to reach parity against the dollar in the first half of 2010.

Jörg Radeke, economist at Cebr and one of the report’s authors, said: “In 2009 countries accounting for more than two-thirds of world economic output will be in recession.

“At the same time, China has not yet overcome its export addiction, resulting in growth slipping below six per cent this year. Combined, these effects will cause the world economy to shrink for the first time since 1946.”

Douglas McWilliams, chief executive at Cebr, added: “On the back of a massive $1.8 billion stimulus announced by governments around the world, growth will return in 2010. However, nothing is for free and growth over the next few years will be dampened by higher taxes and public spending cuts in many advanced economies.”