Rising rates intensify Asean’s debt burdens, but financial crisis remains unlikely
ASEAN economies whose public debt levels rose during the pandemic may feel squeezed by rising interest rates, but they are now more resilient against the risk of a financial crisis compared to the past, say analysts.
While the Asean+3 Macroeconomic Research Office (Amro) “remains wary of risks to the region’s fiscal sustainability”, “a major financial crisis is unlikely at this point”, Amro chief economist Khor Hoe Ee told The Business Times.
“The realisation of a sovereign debt crisis in the Asean+3 region is deemed a tail risk at this juncture,” he added. Asean+3 refers to the 10 Asean member states as well as China, Japan and South Korea.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Asean
No surprise as Malaysia’s central bank holds key interest rate at 3%
Vietnam’s banks face borrowing cost rise as deposits dip
Malaysia’s stock market capitalisation hits record high of RM2 trillion
Asean can enhance clean-energy trade, align climate reporting standards: Grace Fu
Made-in-Indonesia rule threatens Jokowi’s move up value chain
SpaceX’s unit Starlink secures Indonesia operating permit