THE HON JOSH FRYDENBERG MP
28 October 2019
AUSTRALIA’S AAA CREDIT RATING REAFFIRMED BY FITCH
Australia’s AAA credit rating has been reaffirmed by Fitch Ratings in a strong expression of confidence in the Morrison Government’s disciplined fiscal and economic management.
Today’s report by Fitch confirms Australia is one of only 10 countries which has a AAA credit rating with all three major ratings agencies.
Underpinning its decision, Fitch praised our “effective and flexible policy framework” and “improved fiscal performance” while pointing out that a negative rating action could be triggered by a “sustained widening of the fiscal deficit”.
The Australian economy has completed 28 years of consecutive economic growth “in the face of substantial external, financial, and commodity price shocks”.
Fitch also note that “sound prudential regulation and ongoing strengthening of underwriting standards have improved the resilience of bank balance sheets and limited their exposure to riskier mortgage products”. This has increased the resilience of the economy to future shocks.
Today’s announcement will further boost confidence in the economy which has created nearly 1.5 million new jobs since the Coalition came to Government. Jobs growth of 2.5 per cent through the year is stronger than any G7 economy and more than double the OECD average of 0.9 per cent. The economy has recorded three years of consecutive monthly jobs growth which is the first time on record.
We have managed to achieve these strong results despite global headwinds and the ongoing impact of the drought. We are also providing legislated tax relief for 10 million Australians enabling them to keep more of their hard earned money.
Fitch report that “risks are tilted to the downside given uncertainty around US-China trade policy and slowing growth in China”.
With headwinds building, now is the time to stay the course and not make knee jerk decisions as we saw under Labor with overpriced school halls, pink batts and $240 billion of accumulated deficits.
The Labor party is focused on talking down the economy and engaging in panic and crisis putting politics ahead of Australian jobs.
The Morrison Government is focused on delivering its economic plan to lower taxes, build more infrastructure and invest in skills while restoring the nation’s finances.
Our strong economic performance and the important reforms we are undertaking means a more secure future for all Australians. |