High Oil Prices are Stinging Abroad - 02/18/2005

The recent econ contractions in Germany, Italy and Japan challenge the widespread perception that the world's major industrialized econs are able to shrug off high oil prices and cast a shadow overtheir prospects in 2005. In each of these countries persistently high oil prices colliede with an already fragile econ suffering from the reluctance of consumers to spend. The drag of oil prices was enough to tip all 3 from low growth into negative growth in the last quarter...lower global rowth than last year is likel to damp exports...that combination means the weker industrial econs will need a significant improveent in employment and consumer spending to resume their recovery.