Economy estimated to grow 3.2% in 2022, moderate to 2.6% in 2023, agency says
Moody’s said Tuesday it has affirmed Australia’s credit rating at ‘Aaa’ and maintained its stable outlook.
“Moody’s expects that Australia’s wealthy and resilient economy will continue to grow solidly in the medium term, as it continues its recovery from the impact of the Covid pandemic,”the global rating agency said in a statement.
“Effective deployment of monetary, financial and fiscal policy tools to limit the short-term credit effects of the pandemic illustrate the strengths of Australia’s proactive and flexible monetary, financial regulatory and fiscal institutions,” it added.
Moody’s said it expects Australia’s economy to grow 3.2% in 2022 but moderate to 2.6% next year as tighter monetary policy leads to slower consumer demand.
The agency warned that if there is evidence that the Australian economy’s resilience to negative shocks was diminishing, it could put downward pressure on its rating.