Bulletin: Australia's Fiscal Metrics Will Recover After Delta Blow

MELBOURNE (S&P Global Ratings) Dec. 16, 2021--S&P Global Ratings today said that it expects fiscal recovery in Australia to begin next year as the economy rebounds from the COVID-19 delta outbreak and lockdowns. This follows the Australian government's release today of the 2021-2022 "Mid-Year Economic and Fiscal Outlook" (MYEFO), its update to the budget. Despite recent lockdowns across New South Wales and Victoria, we expect the general government fiscal deficit to narrow in fiscal 2023 and reduce the change in general government net debt markedly since its peak of about 9% of GDP in fiscal 2021. Fiscal improvement and lower borrowing requirements are underpinned by our expectations of a quick economic recovery as restrictions and border controls ease. In our

...MELBOURNE (S&P Global Ratings) Dec. 16, 2021--S&P Global Ratings today said that it expects fiscal recovery in Australia to begin next year as the economy rebounds from the COVID-19 delta outbreak and lockdowns. This follows the Australian government's release today of the 2021-2022 "Mid-Year Economic and Fiscal Outlook" (MYEFO), its update to the budget. Despite recent lockdowns across New South Wales and Victoria, we expect the general government fiscal deficit to narrow in fiscal 2023 and reduce the change in general government net debt markedly since its peak of about 9% of GDP in fiscal 2021. Fiscal improvement and lower borrowing requirements are underpinned by our expectations of a quick economic recovery as restrictions and border controls ease. In our view, the recovery will by aided by the high savings rate and pent-up demand, and the country's rapidly rising vaccine rate in the second half of 2021. Almost 90% of eligible residents are vaccinated. The economic recovery will boost...

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