By KELLY OLSEN, AP Business Writer Wed Jun 29, 4:27 AM ET
SEOUL, South Korea - Surging oil prices could curb Asia's economies, with some analysts predicting the fast-growing region — heavily dependent on oil imports — could slip into a recession if prices don't recede.
With oil prices about 50 percent higher than a year ago, the warnings are starting to mount.
South Korea's central bank said higher crude prices could shave 0.7 percentage points off economic growth this year and raise consumer prices. The Philippines has warned of a "heavy toll." Officials in Japan, the world's No. 1 oil importer, and Malaysia are voicing concerns.
"High oil prices are already weighing on growth in Asian economies," Andy Xie, economist at Morgan Stanley in Hong Kong, wrote in a report this week. "If oil prices do not recede, Asia could slide into recession in the short term."
After rising to a record close of $60.54 a barrel on Monday, crude oil prices fell back some, granting the region's importers a reprieve. In Asian trading Wednesday, light, sweet crude for August delivery was down a cent at $58.19 a barrel on the New York Mercantile Exchange, but traders said prices could easily test the $60 mark again.
Full article here:
http://news.yahoo.com/s/ap/
20050629/ap_on_bi_ge/asia_oil_threat
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