The global economic growth is set to gain between 0.3 and 0.7 percent in 2015 on lower oil prices, economists at the International Monetary Fund said in a blog.
In October, the IMF downgraded the growth projection for the global economy to 3.8 percent.
Lower oil prices lead to an appreciation of oil importers' currencies. The policy response to falling oil prices will depend on whether the country is an oil exporter or importer, chief economist Olivier Blanchard and head of commodities team Rabah Arezki said.
India was able to decrease diesel subsidies recently, and there were no protests as the price did not rise, economists noted. China may decide to tighten monetary or fiscal policy in response to the oil price decline.
Meanwhile, oil exporters will take in less revenue and their budgets and external balances will be under pressure. The decline in oil prices is a «shot in the arm» for the global economy.
For China, lower oil prices would boost GDP growth by 0.4-0.7 percent above the baseline in 2015, and 0.5-0.9 percent in 2016.
For the U.S., GDP boost would be 0.2-0.5 percent above the baseline in 2015, by 0.3-0.6 percent in 2016.
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