This Time, Cheaper Oil Does Little for the U.S. Economy
- 8 years ago
It has been a truism of the American economy for decades: When oil prices rise, the economy suffers; when they fall, growth improves.
As oil prices have fallen to levels not seen since 2003 - sagging below $27 a barrel on Wednesday before rebounding to about $30 on Thursday - many experts now say they do not expect lower prices to bolster the domestic economy significantly in 2016.
Economists at JPMorgan Chase, who predicted last January that lower oil prices would add about 0.7 of a percentage point to the economic growth rate in 2015, now estimate that lower prices might have shaved 0.3 of a percentage point off the growth rate.
As oil prices have fallen to levels not seen since 2003 - sagging below $27 a barrel on Wednesday before rebounding to about $30 on Thursday - many experts now say they do not expect lower prices to bolster the domestic economy significantly in 2016.
Economists at JPMorgan Chase, who predicted last January that lower oil prices would add about 0.7 of a percentage point to the economic growth rate in 2015, now estimate that lower prices might have shaved 0.3 of a percentage point off the growth rate.