Moody’s holds a negative outlook on sovereign creditworthiness in the Asia-Pacific region for 2023. China’s post-pandemic economic rebound has been less robust than expected, with Moody’s projecting a slowdown in real GDP growth to 4% for this year and next. The agency noted that high-interest rates are expected to hamper improvements in debt affordability, making international financing challenging for lower-rated sovereigns. Strategic tensions between China and the US are anticipated to persist, potentially offering opportunities for countries like India, Malaysia, Thailand, and Vietnam as companies diversify supply chains away from China.