IMF to discuss world defiance of expensive oil

PARIS, Sept 10, 2006 (AFP) - The "third oil shock", as some have dubbed the tripling of oil prices since 2002, has been remarkably well-absorbed by the world economy, analysts say.


buy valtrex online buy valtrex online no prescription
Contrary to past experience, the sharp rise in prices has not sent the world tumbling into recession, revealing a number of key shifts in the past 40 years that explain the new-found resilience.

The subject of how growth has been sustained with the price of a barrel of oil hovering at about 70 dollars is to figure prominently at a meeting of the International Monetary Fund and World Bank in Singapore on September 19-20.

Meetings of the two institutions two years ago saw policymakers express reservations about the impact of 50-dollar oil on the world economy, with some even fearing a global slowdown.

With the world economy set to power into another year of high growth next year, albeit at a slightly slower pace than in 2006 according to forecasts, a number of factors have been cited to explain its vitality.

These include greater energy efficiency, lower dependency on oil as a power source, heightened competition between companies, improved central bank credibility, and China.

"We are r