About SBC

Small Business Connections (SBC) is a media platform that delivers targeted content, news, industry reports, trends and tips to business owners, entrepreneurs, startups and stakeholders in the SME sector.

Contact us
Subscribe to our newsletter
  • This field is for validation purposes and should be left unchanged.
  • Home
  • COVID-19
  • Australia’s recovery has been “quicker and stronger than we previously expected”, S&P says as it affirms AAA rating

[adning id=”12070″]

[adning id=”12070″]

Australia’s recovery has been “quicker and stronger than we previously expected”, S&P says as it affirms AAA rating

In a expression of confidence in the Morrison Government’s economic management S&P have affirmed Australia’s AAA credit rating and revised up its credit outlook to stable from negative, praising the “government’s swift and decisive fiscal and health response” and “strong economic recovery”.

Australia remains one of just nine countries to hold a AAA credit rating from the three major rating agencies.

In its report S&P states: “the government’s policy response and strong economic rebound have reduced downside risks to our economic and fiscal outlook for Australia. As a result, we are revising the outlook to stable and affirming our ‘AAA/A-1+’ long- and short-term local and foreign currency ratings”.

S&P also noted the economic recovery has been “quicker and stronger than we previously expected” with the unemployment rate falling “surprisingly fast, to 5.5% in April 2021 from 7.4% in July 2020” which will “limit long-term economic scarring”.

Australia has outperformed every major advanced economy with our economy having “fully recovered lost output caused by the pandemic by March 31, 2021”.

Last week’s National Accounts saw the economy increase 1.8 per cent in the March quarter with output now 0.8 per cent above its pre-pandemic level.

This is a feat no major advanced economy has achieved and is in contrast to Japan, France, Germany and the UK who all contracted in the March quarter 2021 while the euro area is back in recession.

S&P do not expect “small outbreaks or short ‘circuit breaker’ lockdowns to derail [the] expected fiscal recovery” and that they “are more confident that the general government’s fiscal deficits will narrow” and “servicing costs will remain manageable”.

S&P also acknowledges the Coalition’s efforts to return the Budget to balance for the first time in 11 years “on the back of tight fiscal discipline” which provided us with the fiscal firepower to support Australians during COVID-19.

The Morrison Government has committed an unprecedented $291 billion or 14.7 per cent of GDP in direct economic support for individuals, households and businesses.

With the unemployment rate having fallen for six consecutive months and more people in work than before the pandemic our economic plan is working.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email
Share on print
Print

Leave a Comment

Your email address will not be published. Required fields are marked *

SUBSCRIBE FREE
SME NEWS BRIEFS

Get breaking news delivered
  • This field is for validation purposes and should be left unchanged.

RECEIVE GOVT GRANT OF $10K to $250K*.

Austrade Approved Business Events
AVAILABLE NOW APPLY BEFORE 30th MARCH 2021 (Condition apply)

  • ABF Events are approved and listed below have been certified by Austrade on the Schedule of Approved Business Events.
  • This allows exhibitors, sponsors, delegates and partners to participate in the Business Events Grant Program. Note event bookings need to be confirmed ASAP to participate in the grant program
  • The program provides 50% rebate (based on a minimum spend of $20k) for approved items including ABF event-media packages, exhibition stands, corporate function tables, delegate registrations.
  • Govt Grant applications are now open until the 30 March. Please contact ABF to discuss how we can assist, we have experts to assist grant applications.
  • Grant funding will cover up to 50% of eligible expenditure incurred in participating at pre-approved business-to-business events as buyers or sellers during the 2021 calendar year.  All grant applications must be submitted for approval via the following link: https://business.gov.au/grants-and-programs/business-events-grants
  • For further information please see this fact sheet.