Domestic demand should remain generally steady for Asia Pacific economies, especially emerging ones, even with rising pressure from higher US tariffs, S&P Global Ratings said in a Tuesday release.
The rating agency made minor downward revisions to GDP projections across the region, including the 4.1% estimate for China in 2025 and 3.8% in 2026.
Regional economies remain resilient despite policy measures and external pressures, S&P's chief economist Louis Kuijs said.
Countries in the region face direct US tariffs, particularly on cars, pharmaceuticals, and semiconductors, the rating agency said.
However, Australia, Indonesia, New Zealand, and the Philippines should be less affected due to their lower import tariffs and limited trade surpluses with the US, S&P said.
Meanwhile, all countries will feel indirect impacts from trade friction and increased competition from Chinese manufacturers, Kuijs said.
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