IMF warns the world is on the brink of a new recession
Duncan Richardson, News Editor
7 Oct 2015, 2:17 p.m.
The IMF has issued its latest warning that the global economy is on the brink of another recession. The Washington based organisation is estimating that world growth will fall to a modest 3.1% this year, the lowest estimate since 2009.
Although the IMF have predicted global growth will reach 3.6% in 2016, the organisation warned there are considerable head winds facing the global economy. In particular the slowdown in the Chinese economy, volatility in global markets, a strengthening U.S. dollar, concerns over the health of the Greek economy and increased geopolitical tension in the middle east and Ukraine.
The fund said they expect emerging economies to be hit hardest with the Brazilian economy predicted to contract by 3% in 2015 and a further 1% in 2016. The Russian economy is forecasted to shrink by 3.8% this year and a further 1% in 2016.