The government's swift and decisive fiscal and health response to contain the pandemic and limit long-term economic scarring has seen the economy recover quicker and stronger than we previously expected. We are more confident that the general government's fiscal deficits will narrow toward 3% of GDP during the next two to three years after a 10% deficit in fiscal 2021. The 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. Australia has a strong track record of managing major economic shocks, moderating our concern over its high level
