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Moody’s says with coronavirus aside, structural changes add to Asia’s credit challenges.

Key notes

  • Moody’s says credit conditions in Asia will turn negative in 2020, in tandem with a slowdown in growth momentum, continued trade policy uncertainty.
  • Moody’s says slowdown in Asian growth will constrain policy choices and limit the region’s ability to respond to negative shocks.
  • Moody’s says at the sovereign level, weaker growth prospects will hinder revenue generation and shock absorption capacity in Asia.

Market implications

The coronavirus is still a threat, yet there is a more positive outlook in financial and commodity markets recently – More on that here: Coronavirus peaking? How will it impact the global economies and FX?