"In AsiaPac, trade tensions are no longer simply exacerbating the global slowdown in trade volumes. The shock is now also extending to investment, with businesses putting off their expansion plans amid economic, political and policy uncertainties, which will hurt income growth, competitiveness and productivity in the long run," Petch said.
KUALA LUMPUR: Moody's Investors Service has a negative outlook for Asia Pacific (AsiaPac) sovereign creditworthiness in 2020, due to slower economic growth, a turbulent external environment and some governments' reduced capacity to respond to shocks.
In its report issued on Thursday, the rating agency said a gradual slowdown in growth globally, exacerbated by trade tensions between China (A1 stable) and the US (Aaa stable) -- notwithstanding the phase one trade deal – would constrain the credit quality of rated sovereigns in AsiaPac.
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