APAC to face Russia-Ukraine war heat on higher energy dependence

April 06, 2022 (MLN): Direct trade links with Russia or Ukraine are limited for most Asia-Pacific (APAC) sovereigns. However, import dependence on energy and, in some cases, food means that higher prices will generally be a headwind for APAC sovereigns, pushing up subsidies and current account imbalances across the region, while buoying the few commodity exporters, the latest report by Fitch Rating said. APAC would experience a medium impact rating under a potential adverse macroeconomic scenario involving stagflation amid sharply reduced growth, the surge in global oil prices, prolonged higher inflation and interest rates. The rating impact may involve numerous…