New research highlights Asia's particular vulnerability to rising oil prices
In a new research briefing, Phyllis Papadavid, Director of Research at Asia House, highlights key economic trends in Asia as oil prices surge.
The increase in oil price, relative to last year, has been significant. As mentioned in the quarterly update of the Asia House economic readiness indices, this will impact Asia’s growth outlook. Gulf Cooperation Council economies, by contrast, are likely to see a boost to their growth outlooks. However, past oil price shocks have either led to – or coincided with – significantly weaker global growth (see figure below).
In the latest Asia House research briefing, Phyllis Papadavid takes a look at Asia’s resilience to oil price shocks, and highlights areas that indicate particular vulnerability for the region. Two areas of concern are decreasing savings across Southeast Asia, and increasing risk aversion in the region's credit markets.
