Lower oil prices to lift global growth in 2015-15, says BBVA

HONG KONG - The drop in oil prices could increase global growth by 0.4% in 2015-16, says BBVA Bank, suggesting that advanced economies could see a positive effect on growth in the US (0.3%) and Europe (0.4%), with a higher effect on Spain (0.7%).

“For emerging countries, we expect no effect on Chinese growth as the positive impact (around 0.3% in 2015-16) will reduce the need for stimulus policies with side effects in terms of financial vulnerabilities,” BBVA says.

In Latin America, there will be a positive impact on Chile, Peru and Argentina, and a negative effect in Colombia. But the biggest economies in the region (Mexico and Brazil) will see a negative effect.” www.bbvaresearch.com (ATI).