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Argentina, Ghana and Pakistan have little room; the Philippines, Thailand and Korea can do more while China is constrained and India needs to be careful, per Standard Chartered Bank.

Key quotes

“Korea, Thailand, Peru and the Philippines have enough scope for fiscal easing despite have stable or rising government debt levels.”

“The Czech Republic and Poland have seen their debt data improve, giving them more space.”

“Indonesia, Russia and Saudi Arabia hold sufficient room for expansion, although Saudi’s rising debt levels should be monitored carefully.” 

“China authorities will likely have to be more careful about how much fiscal easing they undertake. Other countries saddled with already high debt include Malaysia, Hungary and India.”

“Argentina, Brazil and Pakistan have no fiscal space. These countries have also been flashing warning signals as the most vulnerable to external debt default.”

“South Africa has little room for manoeuvre on the fiscal front, as is evident from rating agencies’ continued focus on South Africa’s rising public debt.”