December 2004
Asia Monitor: South East Asia Monitor Volume 1;Dec2004, Vol. 15 Issue 12, p8
Country Report
Country Report
The article reports that South East Asia is set to be one of the top performing regions of the world economy. Higher oil prices do however present a major risk to this outlook. Thailand is particularly exposed to higher oil prices, and the Asian Development Bank has forecast that Thai growth in 2005 would be 4 percentage points lower if oil prices remain at U.S. $ 50/b. Thailand is especially vulnerable to a higher oil price because the economy is relatively oil intensive, and because the government still subsidises oil which gives consumers no incentive to cut consumption when the oil price increases.


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