Friday 09 January 2015
Most developing countries will benefit from the lower oil price
The World Bank predicted that oil prices will continue to decline through 2015, and accompanied by a real significant shift in income from exporting countries to oil-importing countries, said the World Bank in a report that low prices mean for many importing countries to increase the growth rate and the weakness of the pressure on inflation and external financial balance rate public, especially if the world has witnessed high economic growth rate.
He said the World Bank in the latest issue of its report "Global Economic Prospects" that the decline in oil prices was due to the combination of a variety of factors, including high oil supply and lower demand for many years, and the decline of geopolitical risks in some regions of the world, the great change in the objectives of the Organization of Petroleum Exporting Countries policy ( OPEC) and the high dollar, and added that the relative strength of the factors driving the decline in oil prices recently is still unclear, however, factors associated Palmarod played apparently a key role, and noted the World Bank to the fall in oil prices represents a huge challenge for the countries of the major exporters, since it will affect negatively on the growth outlook and the fiscal and external positions.
He added, if this continued decline in prices, it undermines the investment in new drilling operations or in existing fields development, and will create the particular risks of investments in some low-income countries or in non-traditional sources, such as child oil or oil sands or oil fields in the water deep.
Said Ayhan Kosi, director of the Development Prospects Group of the World Bank "for policy makers in the oil-importing developing countries, the decline in oil prices provides an opportunity to make structural and funding of social programs, reforms in fiscal policy. In the oil-exporting countries, the sharp decline in oil prices reminds weaknesses severe in high concentration in certain economic activity and the need to strengthen efforts to diversify the economy in the medium term
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