IMF sees weaker growth in China and the World in 2016 and 2017

China’s economy grew at its weakest pace in a quarter of a century last year, raising hopes Beijing would cushion the slowdown with more stimulus policies, which in turn prompted a rally on the country’s rollercoaster share markets.

Growth for 2015 as a whole hit 6.9 percent after the fourth quarter slowed to 6.8 percent, capping a tumultuous year that witnessed a huge outflow of capital, a slide in the currency and a summer stocks crash.

China’s slowdown, along with the slump in commodity prices, prompted the International Monetary Fund to cut its global growth forecasts again on Tuesday, and it said it expected the world’s second-largest economy to see growth of only 6.3 percent in 2016.

The IMF’s latest global growth forecast revised down—3.4 percent in 2016 and 3.6 percent in 2017.
The IMF sees emerging market and developing economies facing increased challenges. The key risks relate to China slowdown, stronger dollar, geopolitical tensions and renewed global risk aversion.