Another estimate indicates that 10 per cent reduction in crude oil prices will reduce Consumer Price Index-based inflation by around 20 basis points (bps) and bring about a 30 bps rise in GDP growth. 13. This provides an ideal setting to bring the current account back to health on a sustained basis and as also work on fiscal consolidation.
This is too valuable an opportunity for us to miss. The oil price decline beyond the $ 70–75 level has, however, given rise to unexpected consequences. Is the fall in oil prices unambiguously good for the world economy? Oil producers have been cutting back on future investments. This implies cutting back on jobs in the oil and gas industry as well as support services.