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Global economy to benefit from lower crude prices: IMF

by ChemOrbis Editorial Team -
  • 02/12/2014 (16:24)
According to media reports, the International Monetary Fund’s Managing Director Christine Lagarde said on Monday that the global economy will benefit from lower crude oil prices, which she described as being a net positive for the global economy. Crude oil prices have slumped around 40% since June, with the pace of decline having accelerated following OPEC’s decision not to cut production.

Lagarde stated that lower oil prices will likely add an additional 0.8% of growth to most advanced economies, including the US, Japan and China as well as Europe since all of these countries are net importers of oil. For the US, lower oil prices are expected to help the country’s economy to grow by 3.5% next year from an initial forecast of 3.1%.

However, Lagarde also said that there will be some losers from lower crude oil prices, such as Russia and Venezuela, which are major oil exporters. Lower oil prices will likely make these countries’ economies more vulnerable.
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