Not surprisingly the International Monetary Fund has cut its global growth forecast for the next two years.
In October the IMF projected world growth of 3.8 percent for 2015 now revised down to 3.5 percent.
In 2016 growth will fail to meet the IMF’s initial 4 percent target and will hit the 3.7 percent mark.
The latest doom and gloom comes despite most countries benefiting from the low oil prices.
Olivier Blanchard is Chief Economist at the IMF: “For 2015, we have revised US growth up to 3.6 percent, but we have revised Eurozone growth down to 1.1 percent and Japan growth down to point six percent.”
The exception to the rule is the United States of America with the IMF saying Washington has well and truly put the financial crisis behind it.
The British economy is expected to bump along at 2.4 percent growth for 2016.
While Russia will see its economy contract by 3 percent this year and 1 percent next.
A Capital Market Advise for Close Brothers Seydler Bank is Oliver Roth: “America and Asia have stable growth, while the Europeans are still right in the middle of a debt crisis. The economy is going nowhere. So the global economy is being supported by two and not three pillars and that is a grave concern for the IMF:”
The emerging markets are facing problems namely from high US interest rates and as growth steadies governments need to take prudent decisions for the well being of their economies.