Economic fundamentals in the Asia-Pacific have grown strong since the 1997 Asian financial crisis but the region faces risks such as soaring oil prices and rising interest rates in the United States, the world's biggest economy.

"High and rising oil prices are the main threat to the prospects of net oil importing economies in the region," said the report by the United Nations Economic and Social Commission for Asia and the Pacific.

"High oil prices have already pushed up inflation in the region and hurt the current accounts balances of oil importers," it said.

The World Bank has forecast East Asia's economy will grow at a slower 6.6 percent in 2006 after 6.8 percent in 2005 due to the impact of high oil prices, which continue to stay above 70 dollars a barrel.

Apart from the oil factor, the UN warned further rises in interest rates in the United States, the eurozone and Japan could trigger a slowdown in the global economy and hurt export-led Asian economies.