IMF chief says global economy likely to be weaker this year

Staff Writer
Columbus CEO

WASHINGTON (AP) — IMF Managing Director Christine Lagarde says global growth will likely be weaker this year as the world economy confronts a host of problems, including a refugee crisis in Europe, an economic slowdown in China and a pending rise in U.S. interest rates.

Lagarde predicts a moderate rebound in growth in advanced economies such as the United States, Europe and Japan. But she says emerging economies will experience a fifth consecutive year of slowing activity.

Lagarde says potential growth is being held back by low productivity, aging populations and lingering problems from the 2008 financial crisis such as high debt levels. She says it will be critical to properly manage the transition in China to consumer-led growth and the pending move by the Federal Reserve to higher interest rates.