Jim Yong Kim said Thursday that emerging markets will experience slower growth in the near future.
“There are a lot of headwinds,” the World Bank president told CNBC’s “Squawk Alley.” “A big part of it is the fact that commodity prices are down and continue to be down, and a lot of it has to do with the slowing growth rate in China.”
Earlier on Thursday, the Caixin/Markit PMI index showed manufacturing in the region dropped to a new 6 1/2-year low of 47.2, ticking down from August’s reading of 47.3 but still better than an earlier flash estimate of 47.
Kim also said that a possible Federal Reserve rate hike would limit the access to capital for emerging markets. “All these things are giving us a sense that growth will be slower globally, but especially in the emerging markets.”
Kim echoed the remarks made by IMF Managing Director Christine Lagarde, who on Wednesday told CNBC that emerging markets will likely see their fifth-consecutive year of declining growth rates.