1 A further slowdown in China and other emerging markets (EMs), tightening financial conditions and lower commodity prices could provide significant headwinds to growth going forward.
The volatility in financial markets in the first week of 2016, influenced to a large extent by ongoing concerns about Chinese growth and uncertainties about the policy response of authorities, served as a reminder that many investors remain very nervous about the road ahead. Then there is the issue of geopolitical risks, which unfortunately have also shown signs of escalating of late.