Barclays Capital Analyst Explains The Very Real Food Price Problem In Asia

Rahul Bajoria of Barclays Capital spoke to CNBC this morning about the economic outlook for Asia and the threat of a food crisis in the region.

  • 0:40 Looking for 7.4% growth in Thailand, 6% growth in Asia. Domestic demand will be growing in both countries, which is good, though the growth pace may slow.
  • 1:30 External demand is likely to be lower in 2010, but internal consumption/demand will be higher.
  • 2:10 Next year, we’re likely to see more demand side pressures in South East Asia. But monetary stimulus is out, so that may be controlled.
  • 2:45 In the near term, food price pressures are here. The weather conditions are bad too. In the next 6-12 months, it could ease though.
  • 3:20 South East Asian countries are food producers, so they should be OK. China is advocating food reserve releases, and other countries in the region are likely to do this.
  • 4:00 More capital controls are somewhat unlikely. But the risk is there if things become unmanageable.

Check out the 25 countries that will be screwed by a world food crisis >

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