(Xinhua)
Updated: 2007-11-28 15:52

KUALA LUMPUR -- The persistently high global oil prices may cut economic growth in Asia by up to 1 percent, Asian Development Bank assistant chief economist Frank Harrigan has said.

Price hikes from 68 US dollars per barrel to 85 US dollars per barrel can affect economies such as Malaysia, China and Indonesia by minus 0.9 percent, others like the Philippines (minus 1.2 percent), Singapore (minus 1.3 percent) and Thailand (minus 1.1 percent), said Harrigan at the MIER (Malaysian Institute of Economic Research) National Economic Outlook Conference 2008-2009 here on Tuesday.

China and East Asian economies together with India are expected to spearhead growth in 2008 with projected growths of 10.8 percent and 8.5 percent respectively.

Southeast Asia will experience a robust growth of 6.1 percent in 2008, led largely by Central Asia which is projected to continue its double-digit growth.

Malaysia will grow at 5.6 percent this year and 5.7 percent in 2008, the New Straits Times (NST) Wednesday quoted Harrigan as saying.

Inflation in the Southeast Asia region is also expected to drop to 3.8 percent levels for 2007 and 2008.

"While the outlook is positive, there are lots of uncertainty in terms of credit markets, global growth, inflation, oil and trade. Focused reforms are needed for the varying priorities be they fiscal, infrastructure or investment climate," said Harrigan.