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Power Play: Recession risk in 2016

Traders work on the floor of the New York Stock Exchange in New York City.
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Traders work on the floor of the New York Stock Exchange in New York City.

A slowdown in global growth has been one of the key market drivers this year, but that may change in 2016.

Charles Schwab Chief Global Investment Strategist Jeffrey Kleintop tells CNBC's "Power Lunch"on Thursday he expects global growth to improve next year.

"While slightly below the pace of the mid-2000s, global GDP growth of about 3.5 percent would mark a return to the 50-year average pace of growth," Kleintop said.

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He believes the only countries that will suffer a recession next year are the commodity-driven emerging market economies, Brazil and Russia.

"What many investors seem to fear most is a global recession and the bear markets that accompany them. Fortunately, the yield curve tells us that probability of a recession in the world's major economies in the coming year is low," Kleintop said.

With better economic growth, Kleintop sees an improvement in corporate profit growth and that should help support stocks.