DOHA - COUNTRIES should set aside one to two per cent of their gross domestic product for rescue plans to prevent the world economy from shrinking even more next year, a senior UN official told AFP.

Mr Rob Vos, director of the United Nations Development Policy and Analysis Division and lead author of a UN study 'World Economic Situation and Prospects 2009' published on Monday, said this could lead to recovery in 2010.

'A stimulus of around one to two percent of GDP across the world should be enough to stave off negative growth,' Mr Vos said in an interview on the sidelines of a UN conference in Qatar on aid to developing nations.

He said that a fiscal stimulus of the 'same order of magnitude' as the multi-billion dollar rescue packages pledged by the United States and several European nations may be needed to prevent the world economy from shrinking next year.

'Maybe not for 2009 but in 2010 there could be a recovery (if the stimulus package goes ahead) unless markets fall further in the meantime,' he added.

Such a package should have a 'multiplier effect by restoring confidence' to markets and the private sector in general, he said. -- AFP