MNI BRIEF: Australia Econ To See Sustainable Recovery: Moody's

Australia is unlikely to face a lasting drop in potential growth or weakening in fiscal strength over the longer term in the wake of the Covid-19 pandemic, ratings agency Moody's said Wednesday.

"The broad diversification of Australian industry, and the flexibility and competitiveness of the economy will support a sustainable recovery over the next few years, with limited likelihood of severe financial stress destabilizing the economy," said Martin Petch, a Moody's Vice President and Senior Credit Officer. A major driver of Australia's potential growth rate will be the extent to which productivity growth picks up from the relatively weak levels experienced before the pandemic, the report added.