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.
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