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Moody's Affirms Australia at Aaa; Outlook Stable

RATINGS

Moody's affirms Australia's Aaa rating, keeping the outlook stable.

Highlights of the Moody's report:

  • Expects that Australia's economy will grow at 3.2% in 2022.
  • In 2023, GDP growth will moderate to 2.6% as tighter monetary policy leads to a modest slowing of consumer demand.
  • Tensions with China remain as Australia's key geo-political risk.
  • Moody's expects Australia's debt burden to rise, although fiscal consolidation will proceed gradually.
  • Moody's expects a significant increase in RBA interest rates, leading to a moderation of inflationary pressures over 2023.

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