On Monday, S&P warned that the downgrades of sovereigns in Europe may well impact credit ratings in the Asia-Pacific region, the WSJ reports. While governments in the region may have recourse to strong balance sheets, the “dislocation in global funding markets” means that any fallout would be more challenging to deal with than it was in 2008. However, S&P is also of the view that China will manage to avoid a hard landing. Asian economies on the whole have bit hit by waning demand from the European countries that they export to. The IMF has also lowered its global growth forecast for 2012, highlighting that no country is isolated from the crisis in Europe.

This entry was posted by Lisa Pollack on Monday, January 16th, 2012 at 21:15 and is featured in The Closer (16 Jan 2012) . Tagged with china, exports, ratings downgrades, s&p. Edit this entry.