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Oil price spikes will hit Asia the hardest
The price surge compounds the effects of other weak spots. Policymakers should do more on green finance and digitalisation to safeguard future growth.
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DeeperDive is a beta AI feature. Refer to full articles for the facts.
Phyllis Papadavid
Asia is showing signs of particular vulnerability to the current oil price spike at a turbulent time for the region. As the communique from the Asean+3 finance ministers summit warned earlier this month, rising food and energy prices, unexpected monetary policy normalisation in advanced economies, and supply chain disruptions heightened by the Russia-Ukraine conflict are likely to "pose downside risks to the outlook for the region's trade and investment, growth, and inflation". Surging oil prices have a habit of bringing trouble on their tides. Historically, they have coincided with sharp slowdowns in economic growth - a trend that we saw across the last four global recessions.
With oil currently trading at around US$110 per barrel, there is likely more volatility ahead. And the worst of the turbulence could be felt in Asia - home to five of the world's 10 biggest oil importers.
