A desynchronized global economy in terms of growth, inflation and policy interest rate trends is complicating the Asia-Pacific credit outlook. "The key export market of the U.S. seems headed for a soft economic landing, while the eurozone economy is in the grip of stagflation. Meanwhile, China--the region's growth engine--is struggling with an uneven post-lockdown recovery," said Eunice Tan, S&P Global Ratings' head of credit research Asia-Pacific. The region's net rating outlook bias has slightly improved to negative 2% in May 2023 from negative 3% in February. However, the divergent recovery track (post pandemic) is set to widen further across the region’s borrowers.