Bloomberg quoted Australian Treasurer Mr Wayne Swan as saying that Fitch Ratings affirming the nation’s AAA credit rating after a budget review earlier this week is evidence of the economy’s resilience amid difficult global conditions.

Mr Swan in a statement said that Australia sits with 6 other countries given the top ratings and a stable outlook by Fitch, Standard & Poor’s and Moody’s Investors Service.

He said that “This coveted trifecta is another ringing endorsement of our nation’s economy, which continues to kick goals against the backdrop of ongoing global headwinds.”

The government in an October 22nd midyear review said that the government will tighten health care spending and scale back family support payments to help deliver an election year budget surplus. Spending is forecast to be AUD 363.2 billion compared with a May projection of AUD 364.2 billion, while the revenue estimate was cut to AUD 367 billion from AUD 368.8 billion.

Ms Julia Gillard PM Australia is bidding to end 4 years of deficits heading into an election year with polls showing she will lose to the opposition Liberal National coalition. As the government reins in spending, she’s putting the onus on the central bank to further reduce the highest benchmark rate among major developed nations to bolster a slowing economy.

Mr Swan in the statement said that “While we are not immune from what happens overseas, we have every reason to be confident about our economy’s prospects well into the future.”

Source - Bloomberg

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