Sign up | Log in



Home  >>  Daily News  >>  ASEAN ANALYSIS


Asean Affairs  26 April 2011

ADB: rising oil, food prices threaten growth

By  David Swartzemtruber

AseanAffairs     26 April 2011

Related Stories

April 25,2011
Is it war or politics?

April 24,2011

April 22,2011
Security issues flare up in Asean

April 21,2011
The Mekong River gets a reprieve

April 20,2011
Policy Director, International Rivers

April 19,2011
Food insecurity is here to stay

The Asian Development Bank (ADB) weighed in today with its concerns that rising food and oil prices pose a serious threat to the Asian economy.

The bank says that regional growth may drop as much as 1.5 percentage points if the food and oil prices continue through 2011. The bank says that domestic food inflation has averaged 10 percent this year and may throw 64 million people into extreme poverty.

The ADB this month raised its 2011 economic growth forecast for the region and said policy makers should consider capital controls and more flexible currencies as part of their inflation-fighting strategies. Asia excluding Japan will grow 7.8 percent in 2011, it predicts.

“Food prices had been expected to continue a gradual ascent in the wake of the sharp spike in 2008,” the ADB said. “Fast and persistent increases in the cost of many Asian food staples since the middle of last year, coupled with crude oil reaching a 31-month high in March, are a serious setback for the region which has rebounded rapidly and strongly from the global economic crisis.”

“For poor families in developing Asia, who already spend more than 60 percent of their income on food, higher food prices further reduce their ability to pay for medical care and their children’s education,” ADB chief economist Rhee Chang Yong said. “Left unchecked, the food crisis will badly undermine recent gains in poverty reduction made in Asia.”

Rising consumption in more populous and wealthier developing countries, competing uses for food grains, shrinking available agricultural land, and stagnant or declining crop yields will also spur prices, the ADB said.

The region’s growth may be reduced by as much as 1.5 percentage points should the pace of gains in oil and food prices seen so far this year persist for the rest of 2011, the Manila-based lender said in a statement today. Domestic food inflation in many Asian economies has averaged 10 percent this year, an increase in prices that may push an additional 64 million people into extreme poverty, defined as living on less than $1.25 a day, it said.

Policy makers from China to India and Singapore are stepping up the fight against inflation through interest rate increases or currency appreciation as political unrest in the Middle East boosts crude oil prices. The pattern of “higher and more volatile” food prices is also likely to continue in the short term amid declining grain stocks, the ADB said.

Paul A. Ebeling, Jnr

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    26  April 2011 Subsribe Now !
 • Boeung Kak Lake dispute continues Subcribe: Asean Affairs Global Magazine
• New Indonesian customs head to “clean up” Asean Affairs Premium
• Push to lower broadband costs in Malaysia
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Aboitiz power to build hydroelectric plant     
• New fund to focus on China stocks

• Lawsuit now part of Thai telecom story

• Vietnam’s FDI falls

• Garments, textiles lead surge in Vietnamese exports p

Asean Analysis    26  April 2011

Advertise Your Brand
• ADB: rising oil, food prices threaten growth Sponsor Our Events

Asean Stock Watch    26  April 2011

• Asean Markets will post a mixed day p

Global News Impacting Asia    17 November 2010


• Bank of America sees Asian inflation


• Lloyd’s increases insurance push in Malaysia


• Wells Fargo analyst on euro


• Obama’s visit to Asia


ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand