Global growth to disappoint: Christine Lagarde

Global economic growth will be disappointing next year and outlook for the medium-term has also deteriorated, the head of the International Monetary Fund has said.

IMF managing director Christine Lagarde, in a guest article for German newspaper Handelsblatt, said the prospect of rising interest rates in the US and an economic slowdown in China were contributing to uncertainty and a higher risk of economic vulnerability worldwide.

Added to that, growth in global trade has slowed considerably and a decline in raw material prices is posing problems for economies based on these, while the financial sector in many countries still has weaknesses and financial risks are rising in emerging markets, she said.