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Southern Europe gets unexpected lift from oil slide

Countries in region gain economically from the plummeting price through lower energy costs and increased buying power for consumers

Published Wed, Dec 3, 2014 · 09:50 PM

Europe economy

Berlin

THE plunging oil price is giving an unexpected lift to Europe's crisis-battered southern periphery as decreasing fuel costs help spur demand.

Spain, Europe's fourth-largest economy, could add as much as one per cent to annual growth with oil prices between US$80 and US$90 a barrel, the government said. Italy, which is in its fourth year of recession, stands to boost Gross Domestic Product 0.3 percentage points with a sustained US$10 oil price drop, according to BNP Paribas SA.

"The…