The green shoots are turning into yellow weeds. The World Bank forecast for the global economy is a sobering read.

According to the World Bank, the global economy will shrink by nearly 3 per cent this year, a situation created by plunging trade and business lending. And world trade will contract by a gob-smacking 48%, from $707 billion in 2008 to an anticipated $363 billion in 2009. In other words, things are going to get worse before they get better.

But what's clear from the report is that it will be so bad that a recovery in 2010 looks very difficult.

Markets have taken that into account. Markets in Europe and the US went into a tailspin as did the Australian market.

All this needs to be seen in the light of the optimism that's been breaking out all over. It's been premature. A new Boston Consulting Group report warns that the optimism might be dangerous and that the downturn will be "long and deep" and that the road ahead will be strewn with false positives.

So what should companies do to get through? BCG recommends that while companies cut costs, they need to be careful about preserving the core and keep an eye on the top line. There might be opportunities for growth. Don't cut the marketing budget, hold on to the talent and keep investing in R&D.