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ADB: If Mideast Conflict Lasts Only 1 Mth, Impact on Asian Econ Growth To Be Mild
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If the Middle East conflict and the closure of the Strait of Hormuz last for only about one month, the impact on the economic growth of developing countries in Asia will be mild, resulting in only a slight and temporary decline in annual GDP, Albert Park, Chief Economist at the Asian Development Bank (ADB), said. Even in a pessimistic scenario, the shock would not lead to a 1 ppt drop in regional economic growth. If the conflict persists, risks will rise sharply, potentially driving up energy prices, causing greater disruption to shipping and trade, weakening global demand, and bringing more volatility to financial markets, Park added. Historically, 80% of the oil and natural gas passing through the Strait of Hormuz are destined for Asia, indicating the region's vulnerability to long-term supply disruptions. AASTOCKS Financial News Website: www.aastocks.com |
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