Liberal Win Doesn’t Alter Australia’s Fiscal Trajectory

HONG KONG, canada goose uk shop September 08 (Fitch) The Liberal National canadian goose jacket Coalition victory Canada Goose Coats On Sale in Australia’s general election over the weekend is unlikely to shift the government’s near term fiscal position or its medium term trajectory, says Fitch Ratings. Therefore, the election result is neutral for the sovereign’s credit profile (as reflected in the AAA/Stable rating which was last affirmed in April). We expect the new Coalition government canada goose coats on sale will remain on track to reaching a modest budget canada goose clearance sale surplus by 2017, broadly in line with the roadmap set by the outgoing Labour government. This reflects the absence of deep ideological divides between the two main buy canada goose jacket canada goose outlet sale cheap parties on core aspects of fiscal management, notwithstanding political differences on a few taxation policies (such as mining and carbon taxes). Fiscal policy over buy canada goose jacket the uk canada goose past decade has restrained the level of government debt which at 32% of GDP is Canada Goose online lower than at most of its rated peers. The relatively strong cross party consensus on overall fiscal prudence is a key factor underpinning Australia’s strong sovereign credit profile. Overall fiscal discipline is enshrined in the Charter of Budget Honesty Act, enacted in 1998. This has forged a canada goose durable social consensus on maintaining a balanced budget through the economic cycle. Australia’s main medium term credit challenge is adapting to weakening of the terms of trade, and a canada goose uk outlet topping out of investment activity in the mining sector. This has already begun slowing economic activity. Ongoing monetary easing and exchange rate flexibility will support the economy. However, sustaining medium term GDP growth at its potential rate (widely regarded to be around 3% year on year) in the next few years could prove more challenging. Supply side measures which shore up non mining activity in a sustainable way will be canada goose uk black friday the key to sustaining medium term GDP growth. Whether these other sources of growth can respond to Canada Goose Jackets supply side adjustments, and to what extent they will allow the economy to steer clear of external and internal imbalances, will be important for the credit profile. These will determine the extent of medium term vulnerabilities and, ultimately, potential pressures on public finances. The upshot is that any post election shift in fiscal policy should be minor, and unlikely to alter the overall stance of fiscal policy or the trajectory of government finances. But a post canada goose store election economic Canada Goose Outlet strategy that facilitates higher productivity and broadens Australia’s sources of (sustainable) growth is assuming increasing canada goose clearance sovereign credit significance. The above article originally appeared as canada goose black friday sale a post on the Fitch canadagooseoutlete Wire credit market commentary page. All opinions expressed are cheap canada goose uk those of Fitch Ratings. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING Canada Goose sale THIS LINK: here. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER canada goose factory sale RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT Canada Goose Online SECTION OF THIS SITE. FITCH MAY uk canada goose outlet HAVE PROVIDED ANOTHER cheap Canada Goose PERMISSIBLE SERVICE TO THE RATED ENTITY canada goose coats OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS Canada Goose Parka FOR WHICH THE LEAD ANALYST IS BASED IN AN EU REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Fitch Australia Pty Ltd holds an Australian financial services licence (AFS licence no. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001.