Global growth will be disappointing and uneven in 2016

December 30, 2015

 In a guest article for German newspaper Handelsblatt published on Wednesday, theInternational Monetary Fund’s (IMF) Chief Christine Lagarde said that the global economic growth is expected to be “disappointing” next year.

Key Quotes:

The prospect of rising interest rates in the US and the economic slowdown in China are contributing to uncertainty and greater risk of economic volatility worldwide.

Start of normalisation of US monetary policy and china's shift towards new growth model are necessary and healthy but need to be done as efficiently and smoothly as possible. 

Most highly developed economies except the U.S. and possibly Britain will continue to need loose monetary policy. 

In many countries the financial sector still has weaknesses and in emerging markets the financial risks are increasing. All of that means global growth will be disappointing and uneven in 2016. 

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