IMF: underwhelming disappointing growth in 2016

IMF: underwhelming disappointing growth in 2016

12/30/2015 15:22

IMF - underwhelming disappointing growth in 2016BAGHDAD / Obelisk: Director of the International Monetary Fund Christine Lagarde said in an article published in the German newspaper Handelsblatt on Wednesday that global economic growth will be “disappointing” next year.

Lagarde said that the likelihood of higher interest rates in the United States and economic slowdown in China in the case of factors contribute to uncertainty and increase the risk of a weak economy around the world.

Lagarde said that in addition to that, the growth of world trade slowed down a lot and create falling prices of raw materials problems for the economies that depend heavily on them while the financial sector still suffers from weaknesses in many countries and increasing financial risk in emerging markets.

She added, “All of this means that global growth will be disappointing and uneven in 2016,” and pointed out that the weak productivity and aging societies and the effects of the global financial crisis are all factors that inhibit growth.

Lagarde said that the beginning of the return of US monetary policy to normal and transformed China towards consumption-led growth alter the “essential and health centers,” but there is a need to Ajraihma as accurately as possible the efficiency and smoothness.

She said that there was a “possible side effects” added to the likelihood of higher interest rates has already contributed to the increased cost of funding to some borrowers, including in emerging markets.

And warned that the lifting of US interest rates and the strength of the dollar may lead to a faltering companies and its failure to pay banks and countries have become “infected.”