Terry Smith: Prepare for an acceleration in global growth

Terry Smith, manager of the Fundsmith Emerging Equities trust, has said he expects global growth to accelerate following the fall in the price of crude oil.

In his first annual report for the trust, Smith (pictured) said the collapse in the oil price will eventually be a benefit to the wider economy. "We are firmly in the camp which expects a fall in oil and other commodity prices to be a benefit to the world economy," the manager said. "If you are in any doubt about the impact of the oil price on economic activity consider the following. Every global recession since 1970 has been preceded by a doubling of the oil price. When oil prices have fallen by more than 50%, this been followed by rapidly accelerating global growth." He added "h...