Asia’s economic recovery under threat from soaring food prices
A report by the Asian Development Bank (ADB) has warned soaring food and fuel prices threaten to push millions into extreme poverty and hamper economic growth in Asian economies.
Previous reports have suggested that Asia is leading the way in the global recovery with staggering economic growth figures but food price inflation is threatening growth in the region.
The report found that domestic food prices have increased at an average of 10% in many Asian economies this year, while oil prices soar due to the civil unrest in the Middle East.
According to the Manila-based ADB, a sustained 10% rise in domestic food prices could push 64 million people (the equivalent of 2% of Asia’s 3.3 billion people) below the poverty line of $1.25 a day.
The report said: “Fast and persistent increases in the cost of many Asian food staples since the middle of last year, coupled with crude oil reaching a 31-month high in March, are a serious setback for the region which has rebounded rapidly and strongly from the global economic crisis.”