Experts say lower oil prices will help economy

“Many works in agriculture, fishing and other industrial sectors are not realized because of the high oil price. The oil price reduction might bring an economic increase”, declared Ardian Civici, economic expert.

The oil price in our market was reduced with 10% compared to some months ago. Selami Xhepa says that the economic effect is considerable.

“Expert studies suggest that a price drop of 20 USD per barrel would positively affect the economy with at least 0.25 to 0.5%. This means that this would affect the Albanian economy with similar parameters”, declared Selami Xhepa, an economic expert.

The oil price in the international market keeps falling with a strong pace. According to Xhepa, the effect in the Albanian economy would have been stronger, if would have not been stopped by two other factors.

“The lower price will bring more revenues for the budget, since an important part of it comes from the excise of products related to energy. This reduces the contribution mass in the economic growth. Secondly, the recent developments in the currency markets will soften the positive influence of the oil price drop”, Selami Xhepa declared.

But the oil price drop doesn’t have only winners. Hundreds of workers have lost their jobs, since the concessionary companies are cutting costs and investments. However, the effect is mostly positive since it creates better living conditions.

“It will reduce the cost of transportation, heating and other elements that are based on oil. Individuals will have more money they can use for other things”, Civici declared.

The oil price drop could have been much bigger, but it was deviated by a government tax increase.

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