Director of the International Monetary Fund Christine Lagarde, on Thursday, that the growth of the global economy may be weaker this year than last year warned.
Lagarde said it "expects that there will be only a modest acceleration next year for the economy in 2016", warning that "there is a vicious circle economically caused by rising interest rates in the United States and the Chinese slowdown."
She said, "These threats can pose a danger to the recent economic gains in Asia, Latin America and Asia."
The warnings came Lagarde during a speech before the Council of the Americas before the annual meetings of the International Monetary Fund and the World Bank, next week, and the disclosure of the fund forecast for the global economy, on Tuesday.
"The good news is we are seeing a modest recovery in the advanced economies. Experiencing the euro zone to strengthen the moderate recovery, Japan and return to positive growth, and activity remains strong in the United States and the United Kingdom as well."
She said the "bad news is that emerging economies are likely to see declining growth rates for the fifth year in a row."
She explained, "On the economic front, there is a reason for concern, namely the possibility of higher interest rates in the United States and a slowdown in China contribute to the uncertainty and high market volatility."
Lagarde pointed out that "rising US interest rates and the strength of the dollar can reveal not match the currency, leading to corporate defaults, and a vicious circle between companies and banks and sovereign funds."
She also referred to "a sharp slowdown in world trade growth and the rapid decline in commodity prices, which hurt commodity-exporting economies with funding emerging markets" .anthy / 25