Industryweek 10014 Globe 1
Industryweek 10014 Globe 1
Industryweek 10014 Globe 1
Industryweek 10014 Globe 1
Industryweek 10014 Globe 1

Global Growth to be 'Disappointing and Patchy' in 2016: IMF

Dec. 30, 2015
"Rising interest rates and a stronger dollar could push companies into insolvency and banks and governments could become infected," the head of the International Monetary Fund, Christine Lagarde warned.

FRANKFURT --Global economic growth will be "disappointing and patchy" in 2016, the head of the International Monetary Fund, Christine Lagarde, wrote in an article published in the German business daily Handelsblatt on December 30.  

Rising interest rates in the United States, the economic slowdown in China, the persistent fragility of the financial system in a number of countries and the effects of low oil prices on producer countries "all mean that global growth in 2016 will be disappointing and patchy," Lagarde wrote.

"And the medium-term outlook has clouded over, too, because low productivity, ageing populations and the fallout from the global financial crisis are putting the brakes on growth," she continued.

The U.S. Federal Reserve rang in the end to an era of ultra-cheap money by raising its key interest rates earlier this month.

"The Fed is treading a tightrope: normalizing interest rates, while at the same time seeking to avert any risk of disturbance on the financial markets," Lagarde said.

Generally speaking, outside the highly developed economies, "other countries are better prepared than in the past for higher interest rates," she wrote.

"Nevertheless, I'm worried about their ability to absorb shocks" that could be triggered by tighter monetary policy, Lagarde cautioned.

"A lot of countries have taken on more debt, much of which is denominated in U.S. dollars," she argued.

"Rising interest rates and a stronger dollar could push companies into insolvency and banks and governments could become infected," she warned.

Copyright Agence France-Presse, 2015

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!