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Asia-Pacific sovereigns outlook ‘Neutral’ for 2026, reflecting resilience: Fitch

Fitch Ratings-Hong Kong: Most sovereigns in the region should have sufficient buffers in 2026 to weather higher US tariffs and slower growth in China. However, several countries face weak domestic activity, geopolitical tensions or possible resurfacing of social unrest, which could lead to spending pressures or even disruption. Dampened import demand from the US – following the tariff hikes – and China should affect Asia’s non-tech exports in 2026, while some economies should continue to benefit from strong trade in AI, even if this is likely to moderate. We expect China’s growth to slow to 4.1% from 4.8% in 2025,…

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