The year 2016 began with unsettling volatility in financial markets, fueled by fears – perhaps overwrought – of at least a partial global economic slowdown. This notion itself was sparked, in part, by declining oil and other commodities, often attributed to a slowing growth rate in China. Yet macroeconomic forecasts, for the most part, have remained remarkably stable. The global economy is projected to grow between 2.7 percent to 3.6 percent this year, marginally higher than 2015. Still, volatility in the financial markets could create drag on the real economy: the question is how much.