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Emerging Asia ‘highly vulnerable’ to oil surge: ADB

TOKYO, July 4, 2008 (AFP) - Asia's emerging economies are "highly vulnerable" to skyrocketing oil prices, making inflation the number one concern for policymakers, the head of the Asian Development Bank said Friday.
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But emerging Asia looks set to avoid a sharp slowdown given strong economic growth in China and should easily avoid a repeat of the financial crisis that rocked the region a decade ago, said ADB president Haruhiko Kuroda.

"Emerging Asian economies are highly vulnerable to surging oil prices, given their high dependence on oil imports and low energy efficiency," he told a press conference at the Foreign Correspondents' Club of Japan.

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"With the global economy slowing and oil subsidies being phased out, high oil prices could have a more visible impact on domestic consumption and growth in the region this year and in 2009," he warned.

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Oil prices have soared five-fold since 2003 amid rising demand in emerging economies such as China and India and fears of supply shortages. World oil prices shot above 146 dollars a barrel Thursday for the first time ever.

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Central banks in emerging Asia face a dilemma about how to contain inflation through higher borrowing costs while avoiding snuffing out ec

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