The World Economic Forum's 38th annual meet began at Davos on Wednesday amid growing concerns over the global impact of possible US recession, but Commerce Minister of India Kamal Nath saying its affect may be limited as the economic momentum has shifted to countries like India and China.

Southeast Asia will face stiffer export competition from China and likely bear the brunt of any impact in Asia from a major economic slowdown in the United States, an IMF official has said.

The stock markets in United States fell more than two percent on recession worries. They extended earlier losses as some economic analysts say the United States may already be in recession. All three major U.S. stock indexes ended down more than 2 percent after a record quarterly loss at Citigroup. Intel stock plunges about 13% as investors react to the company's earnings and guidance.

ChangeWave Research's latest consumer spending survey points to a recession in U.S. consumer spending. The survey, conducted January 2-8 of 4,604 consumers, focused on spending patterns for the next 90 days. The results show a negative growth rate going forward. Is the U.S. Economy going into recession?

Market commentators say that the fear is a major factor today ahead of U.S. Stock Markets open. Although IBM reported better than expected results, A.G. Edwards Chief Market Strategist Al Goldman says "the stock market will experience some short-lived bounces," but he think the rebound is several months off.