High oil prices erode value of trade exports from ASEAN

High oil prices have the greatest effect on Southeast Asia, a study showed, and it is likely to impact trade exports from the region.

The value of trade between ASEAN and the West is expected to fall by 30 per cent over five years if oil prices double, as in 2008.

That’s according to a study by the Economist Intelligence Unit and Deutsche Post World Net.

The study shows that every one per cent increase in the price of oil reduces the value of trade exports from ASEAN by 0.3 per cent.

That is because Asian exports have a much higher proportion of trade centred on low-value goods.