Lates News

Moody's rating agency has stated that the uncertainty of tariffs and global trade has increased the credit risk in the Asia-Pacific region. The company has downgraded the sovereign credit outlook of the region from stable to negative. Tariffs have brought long-term credit risk to some Asia-Pacific economies, damaging their attractiveness and inhibiting foreign investment. Fiscal spending may increase to help slow down or stop economic growth, leading to fiscal consolidation. Declining income - especially for trade-dependent countries - will further limit flexibility, while widening deficits will increase borrowing needs. If trade negotiations substantially reduce tariffs, Moody's will revise the outlook back to stable. Conversely, escalating tariffs, significant interest rate increases, or prolonged geopolitical conflicts will worsen the situation.