Bulletin: Economic Revival Accelerates Australia's Fiscal Repair

MELBOURNE (S&P Global Ratings) March 29, 2022--Australia's economic recovery is improving the government's fiscal trajectory faster than it previously anticipated. These fiscal outcomes mirror our forecasts underpinning our 'AAA' rating and stable outlook. We expect the general government deficit, including the Commonwealth and state governments, to narrow toward 3% of GDP over the next two years. Today's budget revealed a materially lower deficit in fiscal 2022 of A$85.8 billion (3.9% of GDP) compared with the A$117 billion (5.5% of GDP) headline cash deficit the Commonwealth government predicted in May. The outcome would have been stronger had the government not announced additional spending in the budget to ease cost of living pressures. The improved outcomes came despite lockdowns across the states

...MELBOURNE (S&P Global Ratings) March 29, 2022--Australia's economic recovery is improving the government's fiscal trajectory faster than it previously anticipated. These fiscal outcomes mirror our forecasts underpinning our '###' rating and stable outlook. We expect the general government deficit, including the Commonwealth and state governments, to narrow toward 3% of GDP over the next two years. Today's budget revealed a materially lower deficit in fiscal 2022 of A$85.8 billion (3.9% of GDP) compared with the A$117 billion (5.5% of GDP) headline cash deficit the Commonwealth government predicted in May. The outcome would have been stronger had the government not announced additional spending in the budget to ease cost of living pressures. The improved outcomes came despite lockdowns across the states of New South Wales (NSW) and Victoria in early fiscal 2022, disruptions caused by the omicron outbreak during summer, and recent flooding events. Countering some of this improvement, at the...

Bulletin