Moody’s: Coronavirus will slow growth in the Asia-Pacific region

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International credit rating agency Moody’s warned that the coronavirus outbreak could slow economic growth in the Asia-Pacific region.

Moody’sIn the statement made by, coronavirus epidemic It is noted that it is expected to lead to a decrease in demand and deterioration of supply channels in the Asia-Pacific region.

It was stated that the said developments are expected to cause the economic growth to slow down in the region, and that the negative effects will make the most felt in tourism and trade.

China’s growth prospect falls

The growth expectation of China has been reduced from 5.8 percent to 5.2 percent for this year, and it is emphasized that the decrease in growth may have serious short-term economic consequences and may have a chain effect in the Asia-Pacific region.

South Korea also affected

In the statement that the economic growth forecast for South Korea was decreased from 2.1 percent to 1.9 percent, it was stated that the asset quality of South Korean banks could be affected by the developments in the future due to the environment created by the epidemic.

The statement noted that South Korea banks may face larger risks if large companies request assistance and authorities use more aggressive liquidity measures.

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