Goldman Sachs warns of risks to Asian emerging markets, says a blockade of the Strait of Hormuz could drive inflation higher

Odaily reported that Goldman Sachs analysts pointed out in a research report that the prolonged conflict in the Middle East could put pressure on emerging Asian economies. Goldman Sachs estimates that if the Strait of Hormuz is closed for six weeks, oil prices could rise to $85 per barrel. In this scenario, the region's inflation rate could increase by about 0.7 percentage points, with the Philippines and Thailand being the most sensitive. Supply disruptions could drag down the region's real GDP growth by an average of 0.5 percentage points, with Singapore being the most severely affected. Goldman Sachs added that the current account balances of almost all countries in the region could deteriorate, with Thailand and Singapore being the most affected. (Golden Ten Data)