Can Asian economies cope with the fallout from the Iran war? | Counting the Cost
Working from home. Fuel queues. Blackouts. This is the fallout from the war on Iran across Asia. Governments are scrambling to shield their economies from the worst of the energy crisis.Some are rationing fuel. Others are reintroducing subsidies or limiting exports altogether. And the longer the Strait of Hormuz remains disrupted, the worse it gets - so much so for vulnerable economies.
Rising oil prices are driving up import bills — just as remittances fall and currencies weaken. Dollar-priced fuel, food, fertiliser and debt all have become more expensive, forcing governments to burn through reserves, borrow more or cut elsewhere.
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