Experts: "Oil price slump good for global economy"

Baku. December,9. REPORT.AZ/ Low price of oil observed in world markets will be result with growth of world economy by 0,3% in 2015-2016 years. Report informs, analytics of "Fitch" international agency say. Due to their forecasts, world will increase GDP by 2,5% in 2014, and 2,9% and 3% in 2015-1026 consequently. According to assessments, fall of oil in price by 10 dollars per barrel accelerates world economy growth dynamics by 0,2 % accordingly.

According to forecasts, average price for Brent crude oil will reduce in 2014 from 100 USD to 83 USD in 2015, in year 2016 will rise up to 90 USD. From the beginning of year, oil price reduced by 39,2% and amounted to 67,35 USD per barrel.

"For some of them, my assumption is that it is a calculated hit, but oil price slump is good for world economy", Monetary Fund managing director Christine Lagarde says.

Her comments mirror those of the New York Federal Reserve which said cheaper energy prices were good for the US economy and other net importers of oil.

Citigroup said today that the collapse in the oil price to a five-year low might have run its course and the cost of oil had probably bottomed.

But asked about what she viewed as the biggest threats to the global economy, Ms Lagarde replied: “All producers of oil I think should be under watch.”

She singled out Venezuela as of the most concern because “there is instability and that is not desirable”.

She was also wary of the oil price adding to the “fragility and vulnerability” of the Russian economy.