The plunge in oil prices since June,2014 may hurt some crude exporters but is overall a good thing for the world economy, International Monetary Fund (IMF) Managing Director Christine Lagarde has said.<\/p>\n
“There will be winners and losers, but on a net basis it’s good news for the global economy,” she said in Washington.<\/p>\n
Oil prices have fallen sharply since late June,2014 losing around 30% as supplies increase and global demand for oil grows more slowly.<\/p>\n
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.<\/p>\n
“It’s likely to be an additional 0.8% (of growth) for most advanced economies, because all of them are importers of oil, whether you look at US, Japan, certainly Europe… and China,” she said.<\/p>\n
Crude oil exporters “are taking a hit, for some of them it’s a calculated hit,” Lagarde said, in a reference to the Gulf producers like Saudi Arabia, which have been reticent to cut production to firm up prices.<\/p>\n
In October,2014 the IMF cut its forecast for global growth this year to 3.3% and to 3.8% in 2015, citing stagnation in Europe and Japan and the slowdown in emerging economies.<\/p>\n
Lagarde was speaking at a conference of corporate chief executives sponsored by the Wall Street Journal.
\nSoure: Fin 24<\/p>\n","protected":false},"excerpt":{"rendered":"
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