Oil price fall ‘good news’ for world economy: IMF

Washington: The plunge in oil prices since June may hurt some crude exporters but is overall a good thing for the world economy, International Monetary Fund managing director Ms Christine Lagarde has said.
“There will be winners and losers, but on a net basis it’s good news for the global economy,” she said in Washington, US.
Oil prices have fallen sharply since late June, losing around 30 per cent as supplies increase and global demand for oil grows more slowly.

Paying less
While some exporters are hurting from the price fall, overall it will add significantly to global growth as consumers and businesses pay less for energy.
“It’s likely to be an additional 0.8 per cent (of growth) for most aanced economies, because all of them are importers of oil, whether you look at US, Japan, certainly Europe… and China,” she said.
Crude oil exporters “are taking a hit, for some of them it’s a calculated hit,” Ms Lagarde said, in reference to the Gulf producers like Saudi Arabia, which have been reticent to cut production to firm up prices.

Revised growth forecast
In October, the IMF cut its forecast for global growth this year to 3.3 per cent and to 3.8 per cent in 2015, citing stagnation in Europe and Japan and the slowdown in emerging economies.
Ms Lagarde was speaking at a conference of corporate chief executives sponsored by the Wall Street Journal.

SOURCE: Daily Monitor

Leave a Reply


Arrest of CNN Crew in Minneapolis a ‘Violation of First Amendment’

A CNN news crew on Friday live broadcast their own arrest by police in the U.S. state of Minnesota, as they covered protests over the death of an African-American man. Police handcuffed and arrested CNN reporter Omar Jimenez, producer Bill Kirkos and photojournalist Leonel Mendez at about 5 a.m. CT in Minneapolis, despite Jimenez identifying […]

‘No Decision’ on Next Launch Attempt for SpaceX-NASA Mission

A final decision on a launch attempt for SpaceX’s milestone mission to the International Space Station on Saturday afternoon will take place after assessing the weather that morning, NASA chief Jim Bridenstine said Friday. Fears of a lightning strike postponed the initial takeoff attempt Wednesday of what would have been the first crewed rocket launch […]