High oil prices could slow Asia's economic growth: ADB president

INDIA: High oil prices could weaken Asia's strong economic growth, the president of the Asian Development Bank warned Wednesday, adding that producer and consumer nations should work together to lower prices.

Asia's economy grew by 7.4 percent last year, and is expected to expand another 7.2 percent this year. But "if the high level of oil prices continue, it will affect the growth outlook of the Asia-Pacific region," ADB President Haruhiko Kuroda told reporters.

He was speaking on the first day of the bank's annual meeting, this year being held in Hyderabad, a key information technology center in one of the region's economic powerhouses.

"The oil producers and consumers should sit together and find a sustainable price level," Kuroda said.

Rising oil prices, these days hovering above the US$70 (euro55) mark, are expected to be discussed at the conference, which ends Saturday, along with talks on key trends in the international economy - from information technology to labor - and their implications for Asia.

Iran's deputy oil minister, M. H. Nejad Hosseinian, said Tuesday in India's capital, New Delhi, that the price of a barrel of oil could hit the US$100 (euro79) mark this coming winter as demand outpaces supply.

"Oil supply in the short term cannot be increased," he told reporters. Kuroda said the best way for emerging Asian economies to tackle high oil prices is to raise their energy efficiency. He added the ADB is willing to help.

Kuroda said the ADB would provide loans worth US$1 billion (euro790 million) to member-countries to undertake clean energy projects in the coming years. The new loans would be disbursed by 2008, he said.

"Because of a rapid economic growth in Asia, the region has been suffering from environmental degradation. We have to protect the environment," he said.

Hyderabad, Thursday, AP.