Japanese Economic Minister Says Lower Oil Price Could Boost Economy by 7 Trillion Yen

The recent plunge in global crude oil prices is estimated to boost the Japanese economy by some 7 trillion yen annually, Economic and Fiscal Policy Minister Akira Amari said Friday.

“Oil prices are now less than half what they were at their peak. That stops money outflows and will likely benefit (the economy) by some 7 trillion yen. It is good for the Japanese economy,” Amari told a press conference, referring to calculations by the Cabinet Office based on various data.

Japan depends on imports for more than 90 percent of its energy needs.

Amari also said lower oil prices will likely benefit emerging economies as well but will deal a blow to oil-producing countries, adding that energy prices need to stabilize.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza