This report does not constitute a rating action. Overview Institutional and economic profile Flexibility and performance profile Australian governments have demonstrated a willingness and ability to implement reforms to sustain economic growth and ensure sustainable public finances over economic cycles. Australia's public finances are recovering after the COVID-19 shock. The general government deficit will narrow substantially as stimulus measures finish. Net general government debt will remain higher than in the past. Australia?s economy is recovering strongly after the pandemic. The economy is high income and diversified, which support the rating. Monetary policy and a flexible exchange-rate regime remain key strengths. The central bank supports market function and a low interest-rate environment.Australia's external accounts have proven resilient during another crisis, despite
