S&P Global Ratings yesterday upgraded its outlook on Australia’s “AAA” sovereign rating to “stable” from “negative,” citing the nation’s “swift economic recovery” from the COVID-19 pandemic-driven recession.
Australia’s A$2 trillion (U$1.55 trillion) economy has rebounded sharply to above pre-pandemic levels thanks to its successful handling of the pandemic, together with massive fiscal and monetary stimulus.
S&P said it was more confident now that the government’s fiscal deficit would narrow toward 3 percent of GDP during the next two to three years after reaching an estimated 10 percent deficit in the current fiscal year that ends this month.
Photo: EPA-EFE
“The government’s policy response and strong economic rebound have reduced downside risks to our economic and fiscal outlook for Australia,” S&P said in a statement.
S&P added that its concern over Australia’s high level of external and household debt has been moderated by the nation’s strong track record of managing major economic shocks.
Australian Treasurer Josh Frydenberg welcomed the revised outlook, describing it as a “resounding expression of confidence” in the government’s economic management.
Australia is one of just nine countries in the world to boast an “AAA” credit rating from all three major ratings agencies.
It is among a handful of countries globally that can boast an economy that is larger now than before the pandemic.
On average, Australia’s rich world peers are 2.7 percent smaller than they were before the pandemic, research by Deloitte Access Economics showed, with the UK shrinking almost 9 percent, the EU contracting by 5 percent and the US 1 percent smaller.
Data out earlier showed Australia’s job advertisements climbed for a 12th straight month last month to reach their highest since 2008, prompting economists to predict the nation’s unemployment rate would fall to 4.4 percent by the end of next year from 5.5 percent now.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
US CONSCULTANT: The US Department of Commerce’s Ursula Burns is a rarely seen US government consultant to be put forward to sit on the board, nominated as an independent director Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday nominated 10 candidates for its new board of directors, including Ursula Burns from the US Department of Commerce. It is rare that TSMC has nominated a US government consultant to sit on its board. Burns was nominated as one of seven independent directors. She is vice chair of the department’s Advisory Council on Supply Chain Competitiveness. Burns is to stand for election at TSMC’s annual shareholders’ meeting on June 4 along with the rest of the candidates. TSMC chairman Mark Liu (劉德音) was not on the list after in December last