The Update features an overview of recent trends within the region and sets them in their global context. It also points to risks in the outlook and suggests appropriate responses to these risks. Recent economic trends and the outlook are reappraised and updated for selected countries in developing Asia. A major theme of the Update is the challenge presented by high oil prices for countries of the region. This is the focus of the special chapter in Part 3. A key message that emerges is that higher oil prices may be here for some time, and that countries across developing Asia need to adjust to this possibility

Part 1 Developing Asia and the world 1 Developing Asia and the world 3 Prospects for developing Asia, 2005 and 2006 3 Prospects for the world economy 10 Risks 13 Subregional trends and prospects 16 Part 2 Economic trends and prospects in developing Asia 31 Bangladesh 33 People�s Republic of China 36 India 40 Indonesia 44 Malaysia 47 Pakistan 50 Philippines 54 Thailand 58 Viet Nam 61 Part 3 The challenge of higher oil prices 64 Adjusting to higher oil prices: The challenge for developing Asia 65 Why are oil prices so high? 66 Why high oil prices matter 67 Policy responses to higher oil prices 76 Statistical appendix 86 Statistical notes and tables 87