Southeast Asian economies: a year of exogenous shocks
A series of exogenous shocks slowed down Southeast Asian economies in 2005. The Tsunami which occurred in late December 2004 resulted in economic losses of more than US$3 billion. In the Aceh alone, more than 130,000 lives perished in the Tsunami. Some 8,000 people died in Thailand as a result of the Tsunami a third of which were tourists. Exogenous economic shocks from abroad also impacted on these and other countries in the region during the year. Rising oil prices fueled stagflationary fears not seen since the oil crises in the 1970s. Towards the end of 2005, the threat of a pandemic avian flu in the region underscored the continuing vulnerability of the region to further exogenous shocks.