Research Update: Australia 'AAA/A-1+' Ratings Affirmed; Outlook Stable

Australia's improving fiscal balance supports our 'AAA' long-term sovereign credit rating. We forecast the general government deficit will be less than 2% of GDP between 2023 and 2026, and net general government debt will remain modest at about 30% of GDP over this period. Australia's economy will likely avoid recession and expand over the next three years. This reflects low unemployment and high commodity prices. Australia benefits from being a net energy exporter. Our ratings on Australia benefit from its strong institutional settings, wealthy economy, and monetary policy flexibility. Although external indebtedness is high, external risks are balanced by a current account surplus. We affirmed our 'AAA' long-term and 'A-1+' short-term local and foreign currency sovereign credit ratings. The stable

...- Australia's improving fiscal balance supports our '###' long-term sovereign credit rating. We forecast the general government deficit will be less than 2% of GDP between 2023 and 2026, and net general government debt will remain modest at about 30% of GDP over this period. - Australia's economy will likely avoid recession and expand over the next three years. This reflects low unemployment and high commodity prices. Australia benefits from being a net energy exporter. - Our ratings on Australia benefit from its strong institutional settings, wealthy economy, and monetary policy flexibility. Although external indebtedness is high, external risks are balanced by a current account surplus. - We affirmed our '###' long-term and 'A-1+' short-term local and foreign currency sovereign credit ratings. - The stable outlook on the long-term rating reflects our expectation that fiscal and external metrics will remain steady over the next two years....

Research Update