Oil prices pose risk to East Asia: W Bank

Oil prices pose risk to East Asia: W Bank

SINGAPORE: The sharp rise in crude oil prices is the biggest
concern for East Asia's economic prospects with average growth
expected to slow to 5.9 percent in 2005 from 7.1 percent this
year, the World Bank said on Tuesday.

East Asia, which is a net oil importer, has had to pay an
extra US$25 billion so far this year because of higher energy
prices and the impact will likely be felt in 2005 as the flow-on
effects dampen consumer demand, it said.

Indications that the global economy is already slowing are
also likely to weigh down the region, the World Bank said.

"Oil prices, as all of you are aware, have spiked this year
and increased about 35 percent on average," Homi Kharas, the
World Bank's chief economist for East Asia and the Pacific, said
during the release of the organization's twice-yearly outlook for
the region. -- AFP