Bulletin: Australia Lockdowns Unlikely To Delay Fiscal Repair

MELBOURNE (S&P Global Ratings) Aug. 4, 2021--S&P Global Ratings today said it doesn't expect the current lockdowns across Australia to significantly delay fiscal repair or weigh heavily on the nation's 'AAA' rating. This is because, in our base case, we don't expect to see a repeat of the kind of major fiscal support seen last year. The government's plan to fully vaccinate more than 70% of the adult population by yearend should also help to limit COVID-19-related economic and fiscal damage. Australia's sluggish vaccine rollout and the emergence of new strains has exposed the economy and budget to the effects of COVID-19 outbreaks and social-distancing restrictions. While the nation's economic recovery since the initial outbreak was quicker than we expected,

...MELBOURNE (S&P Global Ratings) Aug. 4, 2021--S&P Global Ratings today said it doesn't expect the current lockdowns across Australia to significantly delay fiscal repair or weigh heavily on the nation's '###' rating. This is because, in our base case, we don't expect to see a repeat of the kind of major fiscal support seen last year. The government's plan to fully vaccinate more than 70% of the adult population by yearend should also help to limit COVID-19-related economic and fiscal damage. Australia's sluggish vaccine rollout and the emergence of new strains has exposed the economy and budget to the effects of COVID-19 outbreaks and social-distancing restrictions. While the nation's economic recovery since the initial outbreak was quicker than we expected, ongoing outbreaks and lockdowns have stalled economic momentum. Localized lockdowns are likely to continue this year until the vaccine is widely administered. We expect the economy to contract in the September quarter; our forecast immediately...

Bulletin