Economy

Economy: IMF warns of disappointing growth in 2016
IMF has warned that global economic growth will be disappointing in 2016 and outlook for medium term has also deteriorated.

The prospects of rising interest rates in US and economic slowdown in China has both contributed to the worldwide uncertainty and increased risks of economic vulnerability.

In addition, Head of IMF Christine Lagarde sees a considerable slowdown in global trade and the decline in raw material prices is posing problems for economies that depend on it.

Meanwhile, the financial sector in many countries still has weaknesses and financial risks are rising in emerging markets due to the stronger USD.

In Singapore, Maybank-KE is of the view that the domestic economy will slowdown by 2% in 2016 (10M15: +2.2%; 2014: +2.9%), due mainly to the drag in the manufacturing sector.