Stable outlook for APAC sovereigns as growth rebounds and 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.
A Covid-19 debt shock in Asia?
The two largest Asian economies, China and Japan, have some of the highest levels of debt in the world, at the end of 2017 Japan’s total debt stood at 395 per cent of GDP and China’s at 254 per cent. But there are some significant differences in their debt composition.