The Asia-Pacific regions gross domestic product growth will accelerate to 4.9% this year from 1.2% in 2009, Moodys said in a report published in Singapore. Excluding Japan, regional growth will be 6.6% in 2010.
Asian economies are leading a recovery from the deepest global recession since World War II, helped by more than $950 billion of stimulus measures. The regions robust growth potential means most countries, excluding Japan, have begun or will start winding down expansionary monetary and fiscal policies, Moodys said.
The build-up in debt over the past couple of years has been moderatea key factor in supporting the generally positive trend in ratings in Asia-Pacific, said Tom Byrne, a regional credit officer at Moodys. Also, most countries fiscal positions can absorb a moderate rise in interest rates in the year ahead, he said. Ratings trends were generally positive in 2009 with no downgrades originating exclusively from the global crisis, Moodys said in the report.