Germany's unexpected and sharp contraction in industrial production confirms China's economic weakness that many eagerly dismiss as merely a hiccup with a high growth rate trend. This hiccup is clearly slowing the German and US economy. The all too common human behavior of whistling past the graveyard has blinding the majority to the onset of these trends.
Headline: IMF warns of stagnation threat to G7 economies
The International Monetary Fund is warning that the weak recovery in the west risks turning into near stagnation after cutting its global economic growth forecast for the fourth successive year.
In its half-yearly update on the health of the world economy, the Washington-based fund predicted expansion of 3.1% in 2015, 0.2 points lower than it was expecting three months ago and the weakest performance since the trough of the downturn in 2009.
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