Citibank: World will face a global recession next year

Baku. 15 September. REPORT.AZ/ American Citibank says, the base scenario for 2016 will be a global recession. Report informs, the cause of the global recession is a meltdown of the the global economy.

As mentioned, the cyclical slowdown in China drags along the rest of the emerging markets (emerging countries). Russia and Brazil are already in recession. The following year, developed markets also will face with this problem.

Analysts ofCitibank believe that, in 2016 the growth rate of China's economy will not exceed 4%. The question for the markets is what steps will the Chinese authorities take.

Despite the claims of the Federal Open Market Committee (FOMC), implying the probability of rate hike at the meeting of the Federal Reserve System (Fed) on September 17, investors do not believe in this: "If the key rate will not rise, developing countries can make a temporary respite ".

The second largest Japanese brokerage Daiwa Securities noted that, the global financial system awaits a collapse, the similiar which the world has never seen. The reason has been called an economic cataclysm in China.