World Bank: East Asia's financial buffers decline
East Asian and Pacific economies face the risk of running out of their financial instruments as the energy shock, expected to continue until 2027, persists, according to the World Bank. Governments have responded strongly through price support measures and reserves reduction, although this approach may be unsustainable and could threaten a decline in Middle Eastern oil exports in the near future. Despite these challenges, current forecasts project a 4.5% economic growth in the region this year, driven by a surge in artificial intelligence. However, the ongoing energy crisis could hinder this growth and lead to further deterioration of financial conditions.
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