Four Ways the Oil Price Crash Is Hurting the Global Economy
Lower oil prices were roundly celebrated as a tailwind for global growth.
In theory, the movement of wealth from commodity producers, which often stow away oil revenue in sovereign wealth funds, to consumers, which spend a far larger portion of their income, is a positive for economic activity.
But strategists at Credit Suisse believe that so far, the global economy has seen only the storm from lower crude, not the rainbow that follows.
"The fall in the oil price was considered by many investors, and ourselves, to be a significant positive for global GDP growth," a team led by global equity strategist Andrew Garthwaite admitted.
The net effect of this development, according to their calculations, has turned out to be a 0.2 percent hit to the global economy. (by Luke Kawa, Bloomberg Business)
The net effect of this development, according to their calculations, has turned out to be a 0.2 percent hit to the global economy. (by Luke Kawa, Bloomberg Business)