S&P Global Ratings has reaffirmed Australia’s long-term credit rating at AAA, arguing that the country’s fiscal outlook remains positive despite massive spending during the Covid-19 pandemic.
In a note published this Monday (30) the risk rating agency predicts that the Australian government will have fiscal deficits equivalent to less than 2% of the Gross Domestic Product (GDP) between 2023 and 2026. net debt will remain at a “modest” level of around 30%.
S&P also believes that the Australian economy will likely avoid a recession and expand over the next three years. “This reflects low unemployment and high commodity prices”, he explains.
Based on the expectation that Australia’s fiscal and external metrics will remain constant over the next two years, S&P assigns a “stable” outlook to the country’s ratings.
Source: CNN Brasil
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