IMF warns of high oil price risk

Rising oil prices pose an increasing threat to global economic growth, the International Monetary Fund has warned.

In its twice yearly assessment of global economic prospects, the IMF said it expected “solid expansion” in 2005, albeit at a slower rate than 2004.

However, it stressed that continued volatility in world oil prices could hamper economic growth.

It also argued that growth would be lopsided, with the US and China outperforming Europe and Japan.