Growth outlook moderates as ASEAN+3 economies scramble for oil

Dong He, Chief Economist at AMRO, talks about how the current oil shock will create a significant impact on inflation. He thinks that if oil continues to be above $100 per barrel, it will eat into consumers' real purchasing power, which would then impact growth too. He adds that ASEAN+3 economies still have policy buffers, but elevated post-pandemic debt and slower fiscal consolidation mean governments must balance short-term support with longer-term sustainability.