Countries are declaring fiscal stimulus packages to fight the pandemic.
APAC governments are expected to release more financial stimulus packages to fight off the pandemic, according to a Fitch Solutions report.
As a result, the heightening government spending is expected to substantially weaken economic activity throughout APAC over the coming years. The report noted that some governments have yet to introduce any stimulus proposals in response to the outbreak.
The limited ability to enact stimulus and restricted government spending is a direct result of the ongoing fiscal crisis and, whilst the economy is expected to stabilise in the coming years, Fitch Solutions do not anticipate a turnaround that would sanction a significant expansion in the healthcare budget.
Therefore, unlike countries with emergency funds for epidemics such as Australia, China, Japan, and Singapore, the responses to COVID-19 in some APAC markets like Afghanistan, will have to be based on redirecting resources already allocated for healthcare – there may be no additional money available, the report added.
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