Australia’s economy is officially one of the strongest in the world.
That’s after Moody’s affirmed Australia’s AAA credit rating, making Australia one of only nine countries in the world to have a AAA credit rating with the three major ratings agencies.
“Australia’s economy continues to demonstrate resilience, underpinned by its scale, diversity and high incomes, as well as its highly flexible labour, product and capital markets, well-regulated financial system and floating exchange rate,” Moody’s said in its report.
“These features enabled the economy to rebound quickly in the wake of the covid pandemic, while proactive and effective monetary and fiscal policy support limited the impact on employment.”
Moody’s also noted signs that Australia is making “productivity enhancing reforms”, such as “lifting women’s participation in the workforce through support for childcare and gender pay equity, a large-scale infrastructure program focused on improving transport systems, support for innovation and the response to climate change”.
Australia’s economy grew 3.3% in the year to March, according to the latest data from the Australian Bureau of Statistics.
Challenges Remain
Now, this isn’t to say that the Australian economy doesn’t have challenges. It definitely does, but in comparison to other countries around the world, the Australian Economy is performing well and is in good shape to continue to be strong in the wake of the pandemic.
To touch on some of the challenges, the report went on to say “Important long-term challenges to Australia’s economic strength remain. Relatively poor and declining productivity performance, which in part parallels international patterns and partly reflects only modest business investment levels may reduce Australia’s long-term growth potential, erode competitiveness and living standards and hinder the economy’s resilience to shocks.”
Moody’s full report can be seen here, along with their disclaimer.
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