UPDATE 2-Global economic outlook is glum despite cheaper oil - IMF
(Adds comments on currency pressures)
By Jason Lange
WASHINGTON Jan 15 (Reuters) - A sharp drop in oil prices and a stronger U.S. economy probably won't be enough to brighten the outlook for global growth this year, the head of the International Monetary Fund warned on Thursday.
IMF Managing Director Christine Lagarde said that while cheaper oil would help the world's consumers, the United States would likely be the only major economy to buck a trend of weakness in investment and consumption.
In a speech that previewed IMF global growth forecasts due next week, Lagarde wondered aloud if plunging oil prices and U.S. growth should make the IMF more upbeat.
"The answer is most likely 'No'," she said before rattling off a laundry list of the world's economic sore spots.
The euro zone and Japan risk suffering a long period of weak growth and dangerously low inflation, with the specter of a nightmarish deflationary spiral of falling prices and wages already looming over Europe, she said.
At the same time, the IMF also sees growth slowing in emerging markets, led by a slowdown in China.
America's relative strength is also translating into some pain abroad. Continuación...