IMF head Lagarde warns of disappointing growth in 2016

Global growth is set to disappoint in 2016, as higher rates in the U.S. and a slowdown in China take a toll on the world economy, Christine Lagarde, managing director of the International Monetary Fund, warned in a guest article in German daily Handelsblatt on Wednesday, according to media reports. The IMF chief explained that while higher interest rates in the U.S. were necessary they, along with the stronger dollar, could lead to more defaults and pressure the banking system and wider economy. "In many countries the financial sector still has weaknesses and in emerging markets the financial risks are increasing. All that means global growth will be disappointing and uneven in 2016," she said in the Handelsblatt article, according to other media reports.

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