Fitch: APAC sovereigns face external headwinds
Fitch Ratings, in its latest report, offers a growth outlook for many APAC sovereigns, suggesting that they are facing external headwinds.
Key takeaways
“Slowing global demand for Asian exports has weakened the growth outlook for many APAC sovereigns.“
“Believes this could pressure fiscal accounts and delay fiscal consolidation. In Australia and New Zealand, falling housing prices add to growth challenges from monetary policy rate hikes.”
“The strengthening of the US dollar has several unintended consequences in Asia, including higher yields and a sharp fall in FX reserves, from revaluation and intervention by some central banks.”
“External financing risks have, in particular, increased in ‘frontier markets’ facing currency pressures and loss of external-market access in combination with elevated public debt.”