S&P upgrades outlook on Australia’s AAA rating to stable from negative

 S&P upgrades outlook on Australia’s AAA rating to stable from negative

People are silhouetted against the Sydney Opera House at sunset in Australia, November 2, 2016. REUTERS/Steven Saphore

S&P Global Ratings upgraded its outlook on Australia’s coveted “AAA” sovereign rating to ‘stable’ from ‘negative’ on Monday citing the country’s “swift economic recovery” from the COVID-19 pandemic driven recession.

Australia’s A$2 trillion ($1.55 trillion) economy has rebounded sharply to above pre-pandemic levels thanks to the country’s successful handling of the coronavirus pandemic together with massive fiscal and monetary stimulus. read more

S&P said it was more confident now that the government’s fiscal deficit will narrow toward 3% of gross domestic product during the next 2-3 years after reaching a 10% deficit in the year-ending June 2021.

“The government’s policy response and strong economic rebound have reduced downside risks to our economic and fiscal outlook for Australia,” S&P said in a statement.

S&P…

Read full article…www.reuters.com