Slowdown fears grow as World Bank cuts growth forecasts — business live

Discussion in 'Market News' started by Lily, Apr 11, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    China’s rebalancing will weigh on growth across East Asia, warns World Bank, as markets await latest IMF forecasts

    7.48am BST

    The World Bank has added to concerns over the China’s economy, by trimming its growth forecasts for East Asia.

    It believes that the region’s GDP will rise by 6.3% in 2016, down from 6.4% in its last forecasts in October.

    “The fundamentally positive base case for growth and poverty reduction in the region is subject to elevated risks.”

    “In particular, vulnerabilities created by the interplay between high levels of indebtedness, price deflation, and slowing growth in China bear close monitoring, as do corporate and financial sector vulnerabilities across much of the region.”

    7.33am BST

    Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

    The IMF’s latest update is expected to reprise warnings about risks from a slowdown in emerging market economies, China’s downturn and lower commodity prices. It cut its outlook in January and recent downbeat comments from its managing director, Christine Lagarde, were taken by many as a hint that more cuts are to come in Tuesday’s World Economic Outlook.

    Lagarde said in a speech that the global economy had lost momentum and that “the recovery remains too slow, too fragile, and risks to its durability are increasing.” She also called on governments to pursue more growth-friendly policies.

    Related: IMF expected to cut growth forecasts in latest outlook

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