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Weathering the Storm So Far: The Impact of the 2003-05 Oil Shock on Low-Income Countries PDF

33 Pages·2006·0.53515625 MB·English
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by Paolo Dudine| 2006| 33 pages| 0.53515625| English

About Weathering the Storm So Far: The Impact of the 2003-05 Oil Shock on Low-Income Countries

This paper examines the impact of the 2003-05 oil price increase on the balance of payments positions and IMF financing needs of low-income country oil importers. It finds that stronger exports reflecting favorable global conditions, a compression of oil import volumes due to the pass-through of world prices to domestic consumers, and a large increase in capital inflows helped low-income countries cope with the oil price shock. Preliminary data suggest that reductions in oil import volumes have not harmed growth. While fiscal balances generally improved, quasi-fiscal liabilities may be building. Lower demand for IMF assistance may reflect broader trends, but further oil price increases could put pressure on additional countries in 2006 and beyond.

Detailed Information

Author:Paolo Dudine
Publication Year:2006
ISBN:1283518104
Pages:33
Language:English
File Size:0.53515625
Format:PDF
Price:FREE
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