World Economy

Low Oil to Benefit Philippines

Low Oil to Benefit Philippines Low Oil to Benefit Philippines

Falling global oil prices will benefit the Philippines, which is dependent on imports of crude and petroleum products, but the dollar remittances that support the economy could take a hit, NewsNow reported. Global oversupply has fostered a plunge in oil prices, which have led to volatile stock markets–the Philippines’ has not been spared—and concerns for economies dependent on exports of the commodity. The World Bank Group, in a report, said prices fell by 47% last year and could decline by another 27% in 2016. For the Philippines, this development could lead to even stronger consumption–a factor behind the country’s continued growth even as other economies weaken. The Philippines’ oil import bill, said Deutsche Bank Research economist Diana del Rosario, has fallen to 12% of total imports from 20% on the back of the global price drop. On average, she said this has given the Filipino consumer more funds to spend on food, travel and other goods and services.