Global economy faces major headwinds
IMF称全球经济面临重大威胁

The head of the International Monetary Fund Christine Lagarde said on Thursday that the global economy is facing major threats this year and requires bold action by policymakers in Europe and around the world.

The IMF's managing director says cheaper oil and strong growth in the United States are not enough to counter the threats that restrain global recovery.

"No, no because there are powerful factors, legacies of the crisis that are still with us and that are weakening our economies," said Lagarde. "Clearly the drop in oil price is as we say a shot and a welcome shot in the arm for global economy. But to pursue the physical analogy, a shot in the arm is good, but if the global economy is weak on its knees, it's not going to help."

Lagarde says cheaper oil should leave consumers in most wealthy nations with more money to spend, thereby supporting their economies. But for most of the other countries, some roadblocks are adding burdens to growth in 2015.

"Too many countries are weighed down by at least two factors: legacies of the financial crisis, high debt, high unemployment. Too many companies and households keep cutting back on investment and consumption today because they are concerned about the growth tomorrow," Lagarde said.

European countries are struggling with slow growth and low inflation. But considering impact of the oil prices fall, Lagarde warns the falling gas prices are pushing the 19 European nations closer to deflation, with declines in commodity prices and wages.

"In the Euro area, cheaper oil should be a positive, right? Most of them (Eurozone countries) are importers and not all of them have 80 percent of their needs supplied by nuclear power energy," Lagarde said. "But it could also contribute to a further decline in inflation expectations, which increases the risk of deflation that you will remember I have mentioned in respect of both the Euro area and Japan. This bolsters the case for additional monetary stimulus, which I am very pleased to see the European Central Bank is considering."

Lagarde says the threat of deflation in Europe makes a stronger case for the ECB's stimulus measures.

Next week, the ECB is expected to launch a bond-buying programme intended to reduce borrowing costs for businesses, households and governments.