IMF SEES DISAPPOINTING GLOBAL GROWTH

IMF sees `disappointing' global growth ahead

Thursday, December 31, 2015

Global economic growth will be disappointing next year and the outlook for the medium term has also deteriorated, the head of the International Monetary Fund said in a guest article for German newspaper Handelsblatt published yesterday.
"All of that means global growth will be disappointing and uneven in 2016," IMF managing director Christine Lagarde said, noting that mid-term prospects had also weakened as low productivity, aging populations and the effects of the global financial crisis dampened growth.In October the IMF forecast the world economy would grow by 3.6 percent in 2016.Lagarde warned that rising US interest rates and a stronger US dollar could lead to companies defaulting on their payments and this may "infect" lenders and states. "Most highly- developed economies except the US and possibly Britain will continue to need loose monetary policy," said Lagarde, as she warned of forex risks. REUTERS