Runaway oil prices to slow global growth

Surging oil prices will shave between 0.25 and 0.5 percentage points off global economic growth this year, the managing director of the International Monetary Fund Rodrigo Rato said in a newspaper interview published Wednesday.

“The economies of Asia, China and the United States are dynamic, while Europe and Japan are lagging behind.”

So far, the global economy had been able to absorb such imbalances “in an orderly fashion … But if oil prices, inflation and currency movements trigger abrupt changes, the situation could deteriorate dramatically,”
Business Report