Surprise victors of a falling oil price

There is a general misperception the fall in oil price is negative for all emerging markets. In fact many of these countries are net importers which helps improve their balance of payments. For net oil importers a high oil price is a potential headwind regarding the credit worthiness of the country. So when the cost of importing oil drops it is ultimately supportive of growth and acts as a positive in terms of trade shock.

Colm McDonagh, Insight Investment

  • Download
  • Print
Tags: , ,
Comments are closed.