Slow growth concerns, terror threats cast shadow on WEF meet

Fears of slow economic growth, including in emerging markets, and concerns over rising terror attacks have cast a shadow over the WEF annual gathering as the rich and influential deliberate on ways to boost global economy.

PTI| Last Updated: Jan 20, 2016, 21:34 PM IST

Davos: Fears of slow economic growth, including in emerging markets, and concerns over rising terror attacks have cast a shadow over the WEF annual gathering as the rich and influential deliberate on ways to boost global economy.

With leaders from various countries, including US Vice President Joe Biden descending at this Alpine town, security measures have been beefed up by the Swiss authorities amid rising terrorism concerns.

Meeting under the theme of 'Mastering the Fourth Industrial Revolution', this year's WEF meet would see participation of about 2,500 individuals, including political leaders and business honchos.

The sluggish growth in China, whose economy expanded at the slowest pace in 25 years at 6.9 percent last year, is likely to be a talking point at this annual meet of the rich and the powerful.

The security situation has become tougher this year in the wake of terror attacks in Paris and other places in recent months.

The Swiss Parliament has given its approval for deploying up to 5,000 Army personnel for the annual WEF meeting.

Flagging off various risks to the world economy, the International Monetary Fund (IMF) on Tuesday trimmed the global growth forecast for 2016 to 3.4 percent from 3.6 percent estimated earlier.

Besides, the projection for growth in 2017 has been cut to 3.6 percent, down from 3.8 percent forecast three months ago.

"India and the rest of emerging Asia are generally projected to continue growing at a robust pace, with some countries facing strong headwinds from China's economic rebalancing and global manufacturing weakness," IMF said.

The multilateral agency has warned of substantial risks to global growth from a slower Chinese expansion, a stronger US dollar, collapsed oil prices and political turmoil wreaking havoc on struggling economies like Russia and Brazil and across the Middle-East.