Fitch Ratings – Fitch Ratings believes political flare-ups will remain a credit risk for some APAC emerging market sovereigns in 2026, following significant political unrest this year in Indonesia, the Maldives, Mongolia, Nepal and the Philippines. The effect of major social unrest on near-term economic activity is usually negative as the instability tends to hurt consumer and business confidence, and external balances can be affected if inflows of tourists, remittances or investment are hit, or if capital outflows increase. Such effects can be modest if stability returns swiftly and confidence is restored, but sustained political tensions can be a significant…
Risk of political flare-ups to linger in 2026 for some Asia-Pacific sovereigns: Fitch
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