Assessing the Impact of Higher Oil Prices in Latin America
For some Latin American countries - especially, the oil importers in the Caribbean - rising energy prices could pose a significant threat to their current account sustainability, particularly if they are accompanied by other negative shocks. In som...
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| Language: | English en_US |
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Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2012/06/16338373/latin-america-caribbean-assessing-impact-higher-oil-prices-latin-america http://hdl.handle.net/10986/11889 |
| Summary: | For some Latin American countries -
especially, the oil importers in the Caribbean - rising
energy prices could pose a significant threat to their
current account sustainability, particularly if they are
accompanied by other negative shocks. In some countries the
fiscal costs associated with subsidies to protect domestic
consumers have been considerable so far. Hence, a better
understanding of the effects of high oil prices and
potential responses in the region is needed. This report
evaluates the effects of oil shocks on economic performance
for a sample of selected Latin American countries. The
effects at the country level depend not only on the
structural characteristics of the economy, such as the
degree of dependence on oil, but also on the policy
reactions to rising prices. Among the countries included in
our study we have: large economies (Argentina, Brazil,
Colombia and Mexico), net oil exporters (Venezuela and
Ecuador), and net oil importers (Dominican Republic, El
Salvador, Guyana and Honduras). |
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