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The head of the International Monetary Fund said on Thursday that the global economy faces major threats this year that require bold action by policymakers in Europe and around the world. Christine Lagarde, the IMF's managing director, said cheaper oil and strong growth in the United States are not enough to counter those threats. "Too many countries are weighed down by at least two factors, legacies of the financial crisis and high debt, high unemployment," Lagarde said. "Too many companies and households keep cutting back on investment and consumption today because they are concerned about the growth tomorrow." Cheaper oil should leave consumers in most wealthy nations with more money to spend on other goods, thereby supporting their economies, Lagarde said. But there are downsides as well, she added. Tumbling oil prices are hurting oil-exporting countries. Falling gas prices are pushing the 19 European nations that share the euro currency closer to deflation, a destabilising fall in prices and wages. Europe and Japan are struggling with slow growth and ultra-low inflation, she said. The threat of deflation in Europe "bolsters the case" for the European Central Bank to provide more stimulus, she said. Next week, the ECB is expected to launch a bond-buying programme intended to reduce borrowing costs for businesses, households and governments. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/53ca7bc4d986521fc9c0d781d8e7e753 Find out more about AP Archive: http://www.aparchive.com/HowWeWork