Weakening global growth to raise credit risks for emerging market issuers: Fitch

ECONOMYNEXT – US tariff implementation and weakening global demand is likely to cause tougher credit conditions for emerging markets in the second half of this year, Fitch Ratings has said, despite the resilience seen in the global economy and capital markets during the first half.

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“We have revised our 2025 sector outlooks for Asia-Pacific, Eastern Europe and Sub-Saharan Africa sovereigns to ‘deteriorating’, from ‘neutral’, to reflect the tougher conditions,” the ratings agency said.

Weaker prospects for bank loan growth, asset quality and profitability amid exposure to US trade policies led Fitch to adjust to some emerging market banking sector outlooks it said.

The full statement is reproduced below:

Weakening Global Growth to Raise Credit Risks for Emerging Market Issuers