Asia growth defies rising oil prices: ADB
Sunday, November 18, 2007
ASIAN economic growth will remain strong this year and in 2008 despite higher energy costs and recent market turbulence, Asian Development Bank president Haruhiko Kuroda yesterday said.
He said there would be no change to the bank's latest regional growth forecast of 8.3 per cent this year and 8.2 per cent in 2008, although inflationary pressures stemming from high oil and commodities prices as well as renewed turmoil in financial markets remained the biggest risks to the region's economic growth.
"There are a few risks... but as I said, despite these risks, our main scenario for Asian economies is that growth will continue this year as well as next year," Kuroda told reporters on the sidelines of an Asean business meeting.
"There is even a possibility that we will even outperform that forecast," Kuroda said.
He acknowledged higher oil prices could have a "negative impact" but he was upbeat about the prospects for the region, which has shown its resilience as energy prices steadily rose.
"Growth momentum in Asia is so strong that up until now the Asian economies have grown very rapidly despite very high level of oil prices," said Kuroda. New York oil prices closed above US$95 ($138) per barrel on Friday amid predictions that Opec will not discuss raising output at its weekend summit. AFP
He said there would be no change to the bank's latest regional growth forecast of 8.3 per cent this year and 8.2 per cent in 2008, although inflationary pressures stemming from high oil and commodities prices as well as renewed turmoil in financial markets remained the biggest risks to the region's economic growth.
"There are a few risks... but as I said, despite these risks, our main scenario for Asian economies is that growth will continue this year as well as next year," Kuroda told reporters on the sidelines of an Asean business meeting.
"There is even a possibility that we will even outperform that forecast," Kuroda said.
He acknowledged higher oil prices could have a "negative impact" but he was upbeat about the prospects for the region, which has shown its resilience as energy prices steadily rose.
"Growth momentum in Asia is so strong that up until now the Asian economies have grown very rapidly despite very high level of oil prices," said Kuroda. New York oil prices closed above US$95 ($138) per barrel on Friday amid predictions that Opec will not discuss raising output at its weekend summit. AFP
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