In a resounding expression of confidence in the Morrison Government\u2019s economic management S&P have affirmed Australia\u2019s AAA credit rating and revised up its credit outlook to stable from negative, praising the \u201cgovernment’s swift and decisive fiscal and health response\u201d\u00a0<\/i>and\u00a0\u201cstrong economic recovery\u201d.<\/i>
\nAustralia remains one of just nine countries to hold a AAA credit rating from the three major rating agencies.
\nIn its report S&P states:\u00a0\u201cthe government’s policy response and strong economic rebound have reduced downside risks to our economic and fiscal outlook for Australia. As a result, we are revising the outlook to stable and affirming our ‘AAA\/A-1+’ long- and short-term local and foreign currency ratings”.<\/i>
\nS&P also noted the economic recovery has been \u201cquicker and stronger than we previously expected<\/i>\u201d with the unemployment rate falling \u201csurprisingly fast, to 5.5% in April 2021 from 7.4% in July 2020\u201d\u00a0<\/i>which will\u00a0\u201climit long-term economic scarring\u201d.<\/i>
\nAustralia has outperformed every major advanced economy with our economy having\u00a0\u201cfully recovered lost output caused by the pandemic by March 31, 2021\u201d.<\/i>
\nLast week\u2019s National Accounts saw the economy increase 1.8 per cent in the March quarter with output now 0.8 per cent above its pre-pandemic level.
\nThis is a feat no major advanced economy has achieved and is in contrast to Japan, France, Germany and the UK who all contracted in the March quarter 2021 while the euro area is back in recession.
\nS&P do not expect \u201csmall outbreaks or short \u2018circuit breaker\u2019 lockdowns to derail [the] expected fiscal recovery<\/i>\u201d and that they\u00a0\u201care more confident that the general government’s fiscal deficits will narrow\u201d<\/i>\u00a0and \u201cservicing costs will remain manageable<\/i>\u201d.
\nS&P also acknowledges the Coalition\u2019s efforts to return the Budget to balance for the first time in 11 years \u201con the back of tight fiscal discipline\u201d\u00a0<\/i>which provided us with the fiscal firepower to support Australians during COVID-19.
\nThe Morrison Government has committed an unprecedented $291 billion or 14.7 per cent of GDP in direct economic support for individuals, households and businesses.
\nWith the unemployment rate having fallen for six consecutive months and more people in work than before the pandemic our economic plan is working.
\nThe next stage in our plan as outlined in the Budget will secure Australia\u2019s recovery from COVID-19.<\/p>\n","protected":false},"excerpt":{"rendered":"
In a resounding expression of confidence in the Morrison Government\u2019s economic management S&P have affirmed Australia\u2019s AAA credit rating and revised up its credit outlook to stable from negative, praising the \u201cgovernment’s swift and decisive fiscal and health response\u201d\u00a0and\u00a0\u201cstrong economic recovery\u201d. Australia remains one of just nine countries to hold a AAA credit rating from … Continue reading “S&P revises up Australia\u2019s credit outlook and affirms the AAA credit rating”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-11688","post","type-post","status-publish","format-standard","hentry","category-aussie"],"_links":{"self":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/11688","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/comments?post=11688"}],"version-history":[{"count":0,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/11688\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=11688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/categories?post=11688"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/tags?post=11688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}