The World Bank has cut its global economic growth forecast for 2016, saying the weak performance of major emerging market economies will tamp activity overall.
The bank raised particular concern about the flagging performance of top emerging economies, especially the BRICS.
China's stock markets had turbulent start this week. It saw its currency, the Yuan's biggest fall in five months sending shivers through regional currencies and global stock markets.
We were hoping to put behind us in 2015 but it has come back with vengeance.
Managing Director of emerging and African markets at Delliote South Africa, Dr Martyn Davies says, “China's major stock indexes regained some ground late this week after Beijing ditched a circuit breaker mechanism that halted trading twice this week and had been blamed for exacerbating the market sell-offs it was designed to limit.”
Davies says, “We have started 2016 in a very shocking fashion, there is hyper sensitivity to risk in the global economy in particular in emerging markets . Statements have been coming out highlighting this risk.”
“ We were hoping to put behind us in 2015 but it has come back with vengeance, In Russia the oil prices are the lowest in many years I believe and commodity prices remain very low in Brazil, South Africa, Indonesia - it's all I'm afraid very strong economic headwinds."