Bank Warns High Food, Energy Prices Threaten Asia’s Growth

The Asian Development Bank (ADB) issued a warning today that rising food and energy prices could impact the expected growth of the Asian economies. Overall, economies in Asia were among the first to recover from the global recession and have experienced robust growth. However, with food prices estimated to have increased 10 percent this year and unrest in the Mid East forcing fuel prices higher, the concern is that price inflation will reverse much of the recent gains.

According to the ADB’s chief economist, Changyong Rhee, “for poor families in developing Asia, who already spend more than 60% of their income on food, higher prices further reduce their ability to pay for medical care and their children’s education.”

“Left unchecked, the food crisis will badly undermine recent gains in poverty reduction made in Asia.” he added.

Source: BBC News

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