India, Indonesia Risk Biggest Fallout From Geopolitical Shocks
NDTV
Economists are fretting over the fallout on developing Asia from a widening of the Israel-Hamas war.
A triumvirate of high oil prices, a surging dollar and geopolitical instability are set to weigh on India and Indonesia among Asia's emerging markets, while energy exporter Malaysia may prove a rare beneficiary.
Economists are fretting over the fallout on developing Asia from a widening of the Israel-Hamas war, with policymakers struggling to assess the consequences for oil supply and the scope of the potential impact on growth. The jump in both the dollar and long-term Treasury yields exacerbates the risks for economies running high current-account deficits.
Brent crude prices have jumped almost 20% in the past three months and Bloomberg Economics estimates they could soar to $150 a barrel, from about $90 now, if the Middle East conflict widens to include Iran. The Islamic Republic supplies arms and cash to Hamas, which the US and European Union designate as a terrorist group, and backs the Hezbollah militia in Lebanon.
