Policy measures may not offset Covid-19 economic damage in APAC: Moody's

Though Asia's external & fiscal buffers are generally more robust than those in other regions, equipping governments with more policy space, their policy responses will only cushion some of the impact

Recent policy measures by governments across Asia Pacific may not be enough to offset the impact of coronavirus (Covid-19) pandemic on their economies, says a recent note by Moody’s Investor Service (Moody’s).

“Although Asia's external and fiscal buffers are generally more robust than those in other regions, equipping most Asian governments with more policy space, their policy responses to date will only cushion some of the impact and not fully offset the economic and credit damage. In addition, not all countries in the region have the same capacity to respond,” Moody's said.

The Covid-19 pandemic, Moody's believes, will manifest itself