Lower oil prices will boost global economy

The recent decline in oil prices will help boost global economy, IMF chief Christine Lagarde has said, as global oil prices have tumbled to multi year low.Stock Market Trading Tips

"It is good news for the global economy," Lagarde said at The Wall Street Journal CEO Council annual meeting here yesterday.

For the United States, low energy prices would help accelerate the economic growth to a 3.5% next year from the October forecast of 3. 1%, she said, adding that Europe is also expected to benefit from lower oil prices.Free Stock Share Tips
Lagarde, however, noted that the Eurozone also faces a risk of the 'new mediocre,' and described it as an economymarked by slow growth, low inflation and high unemployment.

But at the same time, she asserted that reluctant political leaders need to adopt more job-friendly labor market reforms, aggressive and innovative monetary policy and other structural reforms.

"Where they are at the moment they need to use all available tools. They have to get on with it and do it," Lagarde said.Financial Astrology Trading Tips

During the meeting, the International Monetary Fund Managing Director was highly critical of Japan for being slow on implementation of fiscal and labor market reforms.

On Russia, Lagarde said lower prices are adding to their fragility and their vulnerability.Personal Numerology Trading Tips

Oil prices tumbled to multi year lows last week after the Organisation of the Petroleum Exporting Countries decided to maintain its production quotas, rather than lowering its output target.

Crude oil has fallen about 40% since mid June and the price yesterday touched its lowest level since mid 2009 before US oil prices posted their biggest one-day gain in two years overnight. Commodity Trading Tips