US tariffs are hitting exports from China and the rest of the Asia-Pacific (APAC) region, but Fitch Ratings expects growth in the region to remain higher than in other parts of the world.<\/p>\n
The firm said that a weaker US dollar and the ability of some central banks to cut policy rates will help cushion the impact of softer global demand.<\/p>\n
However, it noted that these headwinds are already weighing on the fiscal consolidation efforts of several governments.<\/p>\n
Fitch Ratings added that policy responses to weaker global demand and uncertainty will be crucial in easing the impact of these headwinds on sovereign credit profiles.<\/p>\n
“Some governments are raising spending to support households and alleviate the high cost of living, even though inflation is largely subdued in APAC, often signalling weak domestic activity.<\/p>\n
“We believe that recent violent protests in countries such as Nepal, Indonesia and the Philippines could add to spending pressures,” it said.<\/p>\n
Fitch Ratings also said that deep domestic capital markets have supported the financing of fiscal deficits in some countries, although many have seen their fiscal headroom reduced.<\/p>\n
It noted that fiscal consolidation has generally been modest since debt levels rose sharply during the Covid-19 pandemic.<\/p>\n
Most APAC sovereigns are on a stable outlook, with the exception of Thailand, which is on a negative outlook.<\/p>\n
This reflects increasing risks to its public finances due to prolonged political uncertainty, slowing global demand, a delayed tourism recovery and household deleveraging.<\/p>\n
So far this year, Fitch Ratings has upgraded Pakistan to ‘B-‘ from ‘CCC+’ and Uzbekistan to ‘BB’ from ‘BB-‘, reflecting progress in reform implementation in both countries, as well as Pakistan’s adherence to its IMF programme and improved funding availability.<\/p>\n
The firm downgraded China to ‘A’ from ‘A+’ in April, citing expectations of continued weakening in its public finances and a rapidly rising public debt trajectory during the country’s economic transition.<\/p>","protected":false},"excerpt":{"rendered":"
US tariffs are hitting exports from China and the rest of the Asia-Pacific (APAC) region, but Fitch Ratings expects growth in the region to remain higher than in other parts of the world. The firm said that a weaker US dollar and the ability of some central banks to cut policy rates will help cushion […]<\/p>","protected":false},"author":2,"featured_media":1804,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1803","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.elitecommunicationpr.com\/zh\/wp-json\/wp\/v2\/posts\/1803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.elitecommunicationpr.com\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.elitecommunicationpr.com\/zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.elitecommunicationpr.com\/zh\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.elitecommunicationpr.com\/zh\/wp-json\/wp\/v2\/comments?post=1803"}],"version-history":[{"count":1,"href":"https:\/\/www.elitecommunicationpr.com\/zh\/wp-json\/wp\/v2\/posts\/1803\/revisions"}],"predecessor-version":[{"id":1805,"href":"https:\/\/www.elitecommunicationpr.com\/zh\/wp-json\/wp\/v2\/posts\/1803\/revisions\/1805"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.elitecommunicationpr.com\/zh\/wp-json\/wp\/v2\/media\/1804"}],"wp:attachment":[{"href":"https:\/\/www.elitecommunicationpr.com\/zh\/wp-json\/wp\/v2\/media?parent=1803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.elitecommunicationpr.com\/zh\/wp-json\/wp\/v2\/categories?post=1803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.elitecommunicationpr.com\/zh\/wp-json\/wp\/v2\/tags?post=1803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}