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I have mentioned a few times that we were living in the economic miracle or the lucky country and that investors in particular those who are invested here should be vary careful about taking on board the USA gloom and doom focus of Australian commentators and of course the manipulators trying to create another massive bargain basement out of the ASX.
Standard and Poor's have just had the following to say post the election:
The incoming Labor government will inherit a budget that is in better shape than was predicted just a few months ago, according to global credit rating agency Standard & Poor's.
It also says a change in government by itself has no effect on Australia's AAA rating or its stable outlook with fundamentals, such as a projected fiscal recovery, still sound.
Prime Minister Anthony Albanese and his economic team of Treasurer Jim Chalmers and Finance Minister Katy Gallagher were sworn in on Monday after defeating the coalition at the election on Saturday.
S&P said the new government has made a range of promises around energy investment, manufacturing, housing, childcare, health, and education.
"We will examine the new government's policies, and their impact on the economy and fiscal outcomes, when more details are known," S&P said in a statement on Monday, noting Labor has promised a budget before the end of 2022.
"We expect this budget to set the fiscal tone and tolerances for spending."
S&P expects Australia's economic recovery and commodity prices to improve fiscal outcomes faster than the March 2022 budget anticipated.
"We believe significant upside is likely because commodity prices will outperform budget assumptions. Further, inflationary pressures will drive nominal GDP and taxes higher," it said.
"It will take significant spending during the last three months of the 2022 fiscal year to hit the budgeted deficit of $A85.8 billion," it said.
It said rising debt levels do not currently present a risk to Australia's rating, being comparable to similarly rated peers.
"In addition, we expect borrowing costs to remain manageable. Despite interest rates rising from recent lows, they are still lower than in the past," S&P said."
We live in the lucky country and/or hold our shares in the lucky company so keep doing your own research, have a plan and good luck to all.
My opinion only DYOR
FF
AKIDA BALLISTA
Standard and Poor's have just had the following to say post the election:
Budget in better shape than predicted
Colin Brinsden, AAP Economics and Business Correspondent - 4h agoThe incoming Labor government will inherit a budget that is in better shape than was predicted just a few months ago, according to global credit rating agency Standard & Poor's.
It also says a change in government by itself has no effect on Australia's AAA rating or its stable outlook with fundamentals, such as a projected fiscal recovery, still sound.
Prime Minister Anthony Albanese and his economic team of Treasurer Jim Chalmers and Finance Minister Katy Gallagher were sworn in on Monday after defeating the coalition at the election on Saturday.
S&P said the new government has made a range of promises around energy investment, manufacturing, housing, childcare, health, and education.
"We will examine the new government's policies, and their impact on the economy and fiscal outcomes, when more details are known," S&P said in a statement on Monday, noting Labor has promised a budget before the end of 2022.
"We expect this budget to set the fiscal tone and tolerances for spending."
S&P expects Australia's economic recovery and commodity prices to improve fiscal outcomes faster than the March 2022 budget anticipated.
"We believe significant upside is likely because commodity prices will outperform budget assumptions. Further, inflationary pressures will drive nominal GDP and taxes higher," it said.
"It will take significant spending during the last three months of the 2022 fiscal year to hit the budgeted deficit of $A85.8 billion," it said.
It said rising debt levels do not currently present a risk to Australia's rating, being comparable to similarly rated peers.
"In addition, we expect borrowing costs to remain manageable. Despite interest rates rising from recent lows, they are still lower than in the past," S&P said."
We live in the lucky country and/or hold our shares in the lucky company so keep doing your own research, have a plan and good luck to all.
My opinion only DYOR
FF
AKIDA BALLISTA
