Britain's economy shrank, China said the outlook was grim and companies from Japan to France were punished on Friday as a downturn born of the worst financial crisis in 80 years took root.
Separate figures from the euro zone showed the 15-nation currency bloc was already in recession, analysts said.
Markets nosedived again.
European shares shed 9 percent after stocks in Japan had dropped almost 10 percent to their lowest point in 5-1/2 years. Wall Street equity futures were six percent lower.
"The global financial crisis has been constantly spreading and worsening, creating a severe shock to global economic growth," Chinese Premier Wen Jiabao told an Asia-Europe Meeting of 27 European Union member states and 16 Asian nations.
Britain's economy shrunk 0.5 percent in the third quarter, the first fall in 16 years, after registering no growth in the second.
Bank of England policymaker Andrew Sentance said the risk of a severe recession in Britain had risen. "Hopefully we can avoid that sort of situation in the current circumstances, but the risks of that have increased," he told BBC Radio.
Compounding the gloom, a survey of companies showed the euro zone private sector economy on track for its worst performance since the recession of the early 1990s.
The October Markit Eurozone Flash Purchasing Managers' Indexes show services business contracting at its fastest pace since collapsing after the September 11, 2001 attacks. Factory output was contracting at its fastest pace in at least a decade.
"This is it, we are clearly into recession," said Gilles Moec, economist at Bank of America.
A range of corporate giants reeled too, not just the banks who were hit first and hardest by a financial crisis that began with a U.S. housing market collapse and now threatens recession across much of the globe.
Sony's shares plunged to a 13-year low after it halved its profit forecast because the fallout of the financial crisis hit demand for its cameras and flat TVs.
French carmaker PSA Peugeot Citroen cut its full-year operating margin target on Friday and said it planned to make "massive" production cuts in the fourth quarter after posting a 5.2 percent fall in third quarter sales.
Air France-KLM also succumbed to the financial crisis with a profit warning, sending shares in Europe's largest airline group down almost 10 percent.