In 2021, governments across Asia Pacific face fiscal erosion as they extend their economic support, with the deterioration most severe for the lowest-rated sovereigns. Over the longer term, the pandemic will trigger or accelerate shifts in development priorities and supply chains which will drive new growth models. 

The proposed $1.9 trillion pandemic aid package includes funding for vaccine distribution, state and local governments, and additional relief for individuals. The magnitude of the effects on economic and credit conditions would depend on the size and scope of the package that Congress ultimately passes.

Asset tokenization, which involves the creation of a digital representation of an asset on a blockchain, has transformative potential in financial services. If widely adopted, the technology could increase efficiency and liquidity in credit markets, giving investors more options across asset classes and expanding financing access for borrowers.