Slim prospects for major global pick-up, say economists

London

THE world economy may be set for another year like 2015, with modest growth in developed economies offsetting persistent weakness elsewhere but generating very little inflation and keeping interest rates low.

The US Federal Reserve's long-awaited rise in rates from zero showed confidence in the world's largest economy, but rival China is still struggling for a foothold with rate cuts.

Although some countries, such as Brazil, have mainly home-grown inflation troubles, the Fed's first post-crisis rate hike is an unlikely cure for what ails the rest of the world.

With exchange rates dominating the policy debate in many countries, what happens to the US dollar will matter a lot. "The key question is whether the US economy is finally robust enough not only to sustain its own recovery but also to lift world trade and global growth enough to a…