Economic activity across Asia-Pacific (APAC) continues to weaken on softening global demand and uncertainty associated with the escalation of the US-China ‘trade war’, even so, the APAC nations are mostly stable, ratings agency Fitch said in its latest APAC Sovereign Credit Overview 3Q19.
Key points
The slowdown has been especially pronounced in economies exposed to the electronics sector, such as Singapore and Korea, on account of the global tech cycle and the trade dispute.
Growth is showing more resilience in economies with strong domestic demand and room for monetary and fiscal stimulus.
Only negative outlook in APAC is on HK’s ‘AA’ rating following recent rating action, it shows the relevance of geopolitical risk for some APAC sovereigns
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