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r much more such as the Philippines would have lost 1.6% of its GDP in the year while the price rise, and India 1%. China's GDP would drop 0.8% and its current account remaining, which equal to around $45 billion in 2006, would drop by $6 billion in the first year. In the first year, Asia experienced its largest inflation because of increase in international oil prices the domestic oil price was affected. In 2007 the inflation rate in China and Thailand will increase about one percentage. Latin America will have lesser effect therefore they would suffer less from the increase in oil prices than Asia because net oil imports into the region are a lot less. Economic growth in Latin America would be reduced by only 0.2 percentages. Because GDP of transition economies and Africa is net oil-exporting countries, their total will increase by 0.2 percentages. Since the economies of oil-importing developing countries in Asia and Africa is more reliant on imported oil they would accept the most from higher oil prices because their economies. In addition, energy intensive manufacturing generally in charge of a larger share of their GDP and energy is used less efficiently. On an average, oil importing developing countries use more than twice the oil to produce one unit of economic output as do developed countries.

Oil prices remain a significant macroeconomic variable. Higher prices may have a very significant damage on the economies of oil importing countries and on the global economy as a whole. The prices in 1999-2000 added to the slowdown in global economic motion, international trade and investment in 2000- 2001. Since then the rate of recovery is very low, Due to the increase of oil price. In the last two or three year the Global GDP has increase at least half a percentage higher, thus resulting in the price staying at mid level. Oil importing developing countries would suffer the most as their economies are more oil demanding and less able to face the financial chaos formed by the over price of oil cost. The general economic conditions to the current use in prices are different to the previous oil price shocks. Because of the oil Prices is increasing it has caused uncertain economic revival, excess room and low inflation. Stronger competition in wholesale and retail markets is causing the firms to have a hard time trying to pass through higher energy output in higher prices of goods and services. Economic imbalances would worsen pressure to increase interest rates would expand and the current revival in business and consumer confidence would decrease so as a result they will be threatening the strength of the current recurring economic growth. Instead of removing the problems involving the high increase in oil because the government policy won't allow it, they can try minimize the problem. As people can see, the cause of the oil price increasing will greatly effect many countries and people as well. It is impossible to know if this situation will get better or will it worsen as the years go by but we can only hope that it will get better soon and hope that it will not go out of control.