According to Fitch Ratings, the vulnerability is particularly pronounced among nations with lower income per capita, weaker governance, and less prepared infrastructure.
According to Fitch Ratings, despite looming headwinds such as surges in fuel prices and high-interest rates, Fitch Ratings anticipates the essential nature of transportation facilities and resilient consumer spending to mitigate negative impacts on traffic.
This resilience is attributed to the deceleration of growth in the US and China. The anticipated recovery in the tech cycle is expected to play a pivotal role, particularly benefiting countries like Korea, Malaysia, Taiwan, and Singapore.
Fitch Ratings, anticipating an upswing in electricity consumption driven by a median GDP growth of around 4 per cent in the region, highlights the resilience of its rated power projects.
The favourable economic backdrop, marked by robust growth, is expected to drive improved financial performance, with particular strengths seen in several key markets.
Fitch Ratings expects India to be among the world's fastest-growing countries, with resilient GDP growth of 6.5 per cent in 2024-25. For the current financial year 2023-24, it pegs GDP growth at 6.9 per cent.
According to Fitch Ratings, this upward trajectory in demand is expected to persist in the medium term, with additional support from the markets in South and Southeast Asia, where domestic production struggles to keep pace with rising demand.
According to Fitch Ratings, with higher costs impacting regions like Europe and Latin America, producers in Asia, North America, and the Middle East, benefiting from lower production costs, are strategically targeting these markets for exports.
As projected by Fitch Ratings, the neutral sector outlook is buoyed by significant government spending programs in India, Europe, and the United States, primarily directed towards supporting energy transition initiatives and infrastructure development, both reliant on a steady supply of meta
According to Fitch, the demand for chemical products is anticipated to remain restricted, influenced by economic slowdowns in major economies impacted by inflation and high interest rates.