IMF says outlook for global economy is gloomy

A sharp drop in oil prices and a stronger US economy will probably not be enough to brighten the outlook for global economic growth this year, the head of the International Monetary Fund said yesterday.

IMF managing director Christine Lagarde said that while cheaper oil would help consumers in much of the world, the US would likely be the only major economy this year to buck a trend of weakness in investment and consumption.

“Should lower oil prices and a stronger recovery in the US make us more upbeat about the prospects for the global economy?” Lagarde said. “The answer is most likely ‘No’.”