Global oil price drop to benefit Philippines, says Oxford Economics

Over the weekend, world oil prices plunged to a four-year low of about US$30 per barrel. - AFP

MANILA (Philippine Daily Inquirer): Consumer prices in the Philippines and its economic growth stand to benefit from lower global oil prices, which UK-based Oxford Economics said may serve as a “modest” offset to the adverse impact of the Covid-19 outbreak.

“Under the current period of extreme uncertainty, the economic boost from a decline in oil prices will be modest. Relative to previous oil price collapses, monetary authorities will find it difficult to respond to the negative demand shock as deflationary pressures mount, ” Oxford Economics economists Gabriel Sterne and Luka Raznatovic said in a March 10 report titled “Weak oil a modest global offset to coronavirus impact.”