Mainland China imports vast amounts of oil from the Middle East but India, South Korea and others could fare worse, analysts say
Asia’s oil and gas trade deficit stood at 2.1 per cent of gross domestic product, it calculated. Every sustained US$10 per-barrel increase in oil prices would reduce Asia’s GDP growth “directly” by 20 to 30 basis points, or 0.2 to 0.3 percentage points, the note’s authors said.
“Asia remains most dependent on oil and gas imports,” said the research note’s authors, led by Morgan Stanley chief Asia economist Chetan Ahya.
“Ongoing geopolitical tensions, if sustained, will increase downside risks to Asia’s macro outlook – as supply-side-driven oil price spikes will weigh on growth and macro stability risks,” they added.
