IMF says Growth will be disappointing in this year, 2016. A combination of rising interest rates in the US and weakening economic progress in China is contributing to uncertainty and a greater risk of economic volatility across the world, says IMF Managing Director Christine Lagarde.
Some developed countries, particularly in Europe, were afflicted by high debt levels, low investment and weak banking sectors, she said. At the same time, following years of credit and investment boom, many emerging markets were under pressure to reform their economies to better adapt to new monetary conditions, according to Christine Lagarde.
She warned that rising interest rates and a stronger US dollar could lead to firms defaulting on their debts and that this could then “infect” banks and states.