Oxford Economics Says Philippine GDP Will Slow If Oil Prices Rise
OXFORD ECONOMICS – The Philippines’ Gross Domestic Product (GDP) will slow if the oil prices increase said Oxford Economics.
Data about Gross Domestic Product (GDP) of the Philippines is usually released every quarter and start of a new year.
This information is important for all the Filipino to be aware of the country’s economic standing.
In a previous article, the country’s annual GDP slowed to 6.2% last year 2018. There is a .5 difference compared to the 6.7 percent last 2017.
Budget Secretary Benjamin Diokno said despite the decrease, the county is still among the world’s fastest growth rates.
Based on a report from Philstar, UK-based Oxford Economics said the Philippines GDP could possibly drop by as much as 1.2% next year.
They said it will only happen if the prices of oil increase to 100 dollars per barrel.
“We simulate Brent rising to $100 per barrel by the end of 2019 (corresponding to West Texas Institute (WTI) oil reaching $89 per barrel),” Oxford Economics said.
According to the report, even if Saudi Arabia will produce more oil to neutralize against Iranian imports, the global capacity will still be drained. Oxford economics released a list of countries who will be affected.
These are Philippines, China, india, Argentina, Turkey, and Indonesia.
Based on the report, Oxford Economics also said that there is hope regarding the forthcoming oil issue.
“It is likely that supply impact will be offset by higher production elsewhere, but the market is tightening and all it would take is one more shock to supply (e.g. Nigeria) and oil could reach $100 per barrel”
“Over the longer term, however, we recognize that higher short-term prices could encourage market over-supply and result in lower prices,” it added.
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