Moody's: Stable O'look For APAC As Growth Rebounds & Debt Stabilizes

"Economic growth rates in Asia-Pacific are broadly rebounding and debt burdens stabilizing, giving rise to a stable outlook for sovereign creditworthiness in 2022. Still, the pace of recovery differs vastly, and some economies will experience deep economic scarring, according to a new report by Moody's Investors Service."

• "About half of APAC economies will undergo a growth rebound in the year ahead, but differing degrees of exposure to vulnerable sectors and disparate approaches to reopening will result in a multispeed recovery. This will shape sovereigns' fiscal and debt dynamics," says Anushka Shah, a Moody's Vice President and Senior Analyst.
• "Debt burdens will peak in 2022 and stabilize for most APAC economies, at higher levels than before the pandemic. The scope for further debt reduction will be limited, with deficits unlikely to decline significantly as spending pressures persist, leaving some sovereigns weakly positioned to respond to future shocks."
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