International Monetary Fund Managing Director Christine Lagarde offered a bleak economic forecast for 2016 and beyond in a guest column published Wednesday in the German financial newspaper Handelsblatt .
The IMF head wrote that global economic growth next year would be “disappointing” and the outlook for the medium term had also deteriorated. Lagarde pointed to the continuing slowdown in China and the prospect of rising interest rates in the US as major factors leading to a continued slowdown in world growth rates and the potential for financial shocks.
Lagarde also noted the substantial decline in the growth of world trade, the ongoing fall in oil and other commodity prices, and the worsening economic and financial crisis in so-called “emerging market” and “developing” countries whose economies are heavily dependent on commodity exports and expanding trade.