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GasBuddy News Article

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Higher gas prices could cause wider economic slowdown, economist says

Financial Post, Canada -- Gasoline prices, already near record highs of $1.40 per litre this week, could rise further if Middle East tensions escalate, further dampening the economic outlook.

“Especially if the situation in the Middle East were to worsen, we could see $1.60 per litre,” said Sal Guatieri, vice-president and senior economist at Bank of Montreal. “Under that scenario our economy would slow meaningfully and our unemployment rate would go up.”

Oil prices are expected to remain relatively steady at about US$100 per barrel for the next year, which Mr. Guatieri said would either stabilize gas prices or even cause them to decline a little. However, he cautioned there was a “not insignificant” risk of the cost jumping another 25% (a 30% cumulative increase from last year) if tensions .....


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Submitted Apr 06, 2012 By: Gas User
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: Higher gas prices could cause wider economic slowdown, economist says Back to Topics
REPLIES (newest first) Post a Reply
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bwatchingu
Champion Author Arkansas

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Message Posted: Apr 8, 2012 10:12:30 AM

DUH! It already is
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bigmoo63
Champion Author Kalamazoo

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Message Posted: Apr 8, 2012 9:57:48 AM

Ya think? Thank you captain obvious.
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northeast2
Champion Author New York

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Message Posted: Apr 7, 2012 2:56:18 PM

Restating the obvious.
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bruin19MD
Champion Author Maryland

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Message Posted: Apr 7, 2012 2:31:13 PM

I agree. Fuel matters in cost of almost everything.
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DanMtz
Champion Author Oakland

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Message Posted: Apr 7, 2012 1:08:20 PM

And that's your Econ 1A lesson for today.
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md11capt
Champion Author Denver

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Message Posted: Apr 7, 2012 12:20:26 PM

Darn, I was going to say that.
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CiVX
Champion Author Oakland

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Message Posted: Apr 7, 2012 12:14:05 PM

Really.
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humblepie
Champion Author Toledo

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Message Posted: Apr 7, 2012 11:57:27 AM

brilliant, just brilliant.
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gs7101
Champion Author San Antonio

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Message Posted: Apr 7, 2012 9:28:36 AM

The higher gas prices are already having an impact on most people. There's very little money left in the budget to splurge on non-essential items.
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qwerty17
Champion Author New Jersey

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Message Posted: Apr 7, 2012 9:13:40 AM

i'm shocked - shocked to see that higher gas prices could cause wider economic slowdown.
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majormarket
Champion Author Houston

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Message Posted: Apr 7, 2012 8:59:52 AM

Like others here, I'd say that it already has a restraining effect on our economy.

But, I think high gas prices will continue to be a drag on the economy. Will it tip us back into recession?

I don't think so - but there will still be more small businesses and consumers who will get ground up as the economy sputters along.
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BBopp
Champion Author Dayton

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Message Posted: Apr 7, 2012 8:51:15 AM

Could cause? It will cause and has been doing so for quite some time.
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TruthMatters
Champion Author New Jersey

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Message Posted: Apr 7, 2012 8:22:07 AM

You don't say!
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JamesCalvin
Champion Author Lancaster

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Message Posted: Apr 7, 2012 8:00:32 AM

Making Americans into serfs and plantation WORKERS WAS NOT ONLY THE PLAN LONG AGO... it is reality NoW!
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Joeski1
Champion Author New Jersey

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Message Posted: Apr 7, 2012 7:48:18 AM

a good ole fashioned war with iran should really help things along...

look how much we advanced iraq and afghanistan...

the world is a much better place now and we're doing just great too!!!

RIP: Joseph D'Augistine (latest Nj military member killed in foreign war)
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Joeski1
Champion Author New Jersey

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Message Posted: Apr 7, 2012 7:46:19 AM

nah... the economy is gimping along like an old man with a cane that really could use a rollator...
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scu227
Champion Author New Haven

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Message Posted: Apr 7, 2012 7:30:37 AM

It already has !!

Oil Companies and Speculators are ruining any chance of economic recovery.
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gawxnative
All-Star Author Atlanta

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Message Posted: Apr 7, 2012 7:20:56 AM

Already happening...less disposable income= less consumer spending
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dsaine
Champion Author North Carolina

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Message Posted: Apr 7, 2012 7:04:05 AM

I agree.
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ReddevilNO
Champion Author New Orleans

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Message Posted: Apr 7, 2012 6:55:57 AM

Yep!!!!
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mike1881
Champion Author Fayetteville

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Message Posted: Apr 7, 2012 6:36:55 AM

Geniuses who wrote this article. I think I am going to become a writer and write about steps to save gas, i.e. keep your tires inflated, and high gas prices are slowing the economic recovery. That is pulitzer prize winning stuff these days.
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WalRus49
Champion Author Boston

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Message Posted: Apr 7, 2012 6:28:24 AM

More organized mayhem and pillage..............
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Pozole
Champion Author Portland

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Message Posted: Apr 7, 2012 4:33:00 AM

...ALREADY IS...
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TRYWI
All-Star Author Appleton

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Message Posted: Apr 7, 2012 3:41:04 AM

good
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OTISFL
Champion Author Pensacola

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Message Posted: Apr 7, 2012 3:18:34 AM

COULD cost economic slowdown?!!!! What a rediculous article to even be written as though the consumers are total dummies.
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ClarkSC
Champion Author South Carolina

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Message Posted: Apr 7, 2012 1:43:17 AM

Of course.
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Jeff4U
Champion Author Atlanta

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Message Posted: Apr 7, 2012 1:31:47 AM

Man who run in front of car gets tired ..
Man who run behind car gets exhausted.
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investmentdr
Champion Author Cleveland

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Message Posted: Apr 7, 2012 1:29:30 AM

really
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BJWI
Champion Author Milwaukee

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Message Posted: Apr 7, 2012 1:22:58 AM

common sense would tell you this.
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Sisu58
Champion Author Michigan

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Message Posted: Apr 7, 2012 1:15:32 AM

Ya think?
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anascom
Champion Author Hamilton

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Message Posted: Apr 7, 2012 1:14:45 AM

i agree with you @ 52MPG ! replace could with :

Have caused
or
Will cause
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52MPG
Champion Author Dayton

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Message Posted: Apr 7, 2012 12:59:58 AM

Replace could with will.
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alterman156
Champion Author New York

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Message Posted: Apr 7, 2012 12:54:39 AM

Perhaps the rise in gasoline prices will cause the economy to slow down enough because too much money is being spent on fuel. Then the whole thing of keeping fuel prices high will be self defeating as they could end up crashing as they did in late 2008.
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pbear316
Champion Author Akron

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Message Posted: Apr 7, 2012 12:37:25 AM

We can't win. When prices drop, it's because of economic slowdown. But high prices cause economic slowdown.
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MidNJ
Champion Author New Jersey

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Message Posted: Apr 7, 2012 12:31:04 AM

TomT,

When you say they are looking out for #1

Do you mean they are looking out for you and me?
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el_fr
Champion Author Massachusetts

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Message Posted: Apr 7, 2012 12:21:09 AM

Could?? Will!!!
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wrunner
Champion Author Virginia

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Message Posted: Apr 7, 2012 12:21:06 AM

You don't say!
Say it isn't so!
Say it like it is!
Say you, say me!
Just say no!
If we do not have a say, say so!
Say no more!
You say yes, I say no....
You say goodbye and I say hello....
Say like you mean it and say what is in your mind!
Wise men say....
What else would you like me to say?
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cheapchickKY
Champion Author Lexington

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Message Posted: Apr 7, 2012 12:07:23 AM

Looking for any reason for high prices.
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lesndave
Champion Author Texas

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Message Posted: Apr 6, 2012 11:54:01 PM

Nothing new here
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akitaone
Champion Author Tampa

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Message Posted: Apr 6, 2012 11:53:26 PM

old news, we all here understand that like 2+2=4 high prices=economic slow down
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amerk73
Champion Author Dallas

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Message Posted: Apr 6, 2012 11:44:22 PM

economi slow high gas price
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davenles
Champion Author Texas

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Message Posted: Apr 6, 2012 11:38:07 PM

No new insight here.
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CVA19
Champion Author Salem

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Message Posted: Apr 6, 2012 11:00:49 PM

To his credit, Guatieri is a bank (experienced) economist, not an academic (non-experienced) one like those surrounding our omnipotent and omniscient, yet humble and benevolent president.
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Yooperheart
Champion Author Michigan

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Message Posted: Apr 6, 2012 10:51:30 PM

Him be a geenius.
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A_NY_Outlaw
Champion Author Albany

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Message Posted: Apr 6, 2012 10:04:27 PM

It took an economist to do come up with this? No wonder our country is in the shape it is.
Jeeesh.
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dbecks44
Champion Author Michigan

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Message Posted: Apr 6, 2012 9:33:18 PM

I chuckled a little when I saw "not insignificant" in there. What a politician's way of speaking.
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graceman
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Message Posted: Apr 6, 2012 9:33:16 PM

Boy this guy is brilliant,Not!
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Bussman
Champion Author Dallas

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Message Posted: Apr 6, 2012 9:26:22 PM

Hope they don't pay that economist much to make a prediction like that.
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bandannaman
Champion Author New Jersey

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Message Posted: Apr 6, 2012 9:10:01 PM

Is that US dollars or Canadian dollars?
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TomT2Lee
Champion Author Cincinnati

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Message Posted: Apr 6, 2012 8:52:12 PM

and higher prices could lead to the Federal Reserve printing more money. Oh, wait, they already have been doing that, which has devalued the dollar and led to higher commodity prices. Don't worry people. Relax. The professional politicians are looking out for number one!
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