Oil is aiding growth – PIOJ

The Planning Institute of Jamaica (PIOJ) said Monday that the fall in oil prices year over year is having a positive impact on the economy. This, despite weak growth figures which continue to waver below one per cent of GDP.

“…Lower oil prices have resulted in lower energy and transport prices locally which would have a positive impact on the cost of production. Note also that based on preliminary data, for the October – December quarter of 2015 the electricity and water industry grew by an estimated 5.0 per cent due to increased electricity consumption,” the PIOJ said Monday in responses channelled through communications specialist Claudette Myers.

Oil prices have been on a downward trend for the last 18 months, coming from over US$100 per barrel of crude in 2014 to about US$40 currently.

However, drought conditions and falling commodity prices have restrained any surging outcome that the reduced cost of production might have had, on average.

http://www.jamaicaobserver.com/business/Oil-is-aiding-growth—PIOJ_55385