Oil price drop to benefit PHhome/Business/Top Business/Oil price drop to benefit PHA recent drop in oil prices is a boon for emerging Asia and the Philippines in particular, London-based Capital Economics said. “Most countries in the region are net oil importers (Malaysia is the key exception) and should gain from the recent drop in oil prices, with the Philippines likely to be among the biggest beneficiaries,” the research consultancy said late on Tuesday. “Lower oil prices, which will put downward pressure on domestic energy and fuel prices, mean inflation should drop back over the coming months,” Capital Economics pointed out. A reduction in the country’s oil import bill, meanwhile, will also provide some support to the current account. Finally, the consultancy said “lower oil prices should lead to an increase in real incomes, which should provide a boost to consumption and investment, and help to offset the impact of some of the central bank’s recent interest rate hikes.”

Source: Manila Times November 28, 2018 16:30 UTC