Oil shock, AI boom in Asia-Pacific

At a press briefing in Bangkok, IMF’s Director of the Asia and Pacific Department Krishna Srinivasan spoke about the forces currently affecting Asian economies ranging from the Oil shock to the AI boom.

“The Asia Pacific economies have been shaped by three forces. The energy shocks starting in February, which hit a region that is highly reliant on oil and gas, much of it imported from the Middle East,” Srinivasan said. He continued, that “some countries have been able to adapt by diversifying import sources for oil, compressing demand and making greater use of alternative energy types.

Major economies have also drawn down inventories. In addition, a broad range of policy measures have been implemented to cushion the impact, including measures to contain inflation, mitigate supply disruptions, and support incomes.”