Rating agency predicts $20 billion deficit for Australia

Rating agency predicts $20 billion deficit for Australia

One of the world’s major rating agencies, Standard and Poor’s, believes Australia will record a budget deficit of $20 billiob to $25 billion this year.

The agency has slashed its earlier estimate of a $1 billion surplus.

The senior director of sovereign ratings, Tan Kin Eng, says the cut is mainly due to global economic problems.

He says our export sector is not doing as well as initially expected, commodities exports have not been as strong, and expenditures are rising.

But in parliament today, Treasure Wayne Swan has dismissed the claims, saying our sovereign rating given by the agency as the highest possible serves to the core of our fiscal discipline.

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Libby Dreyer
Libby Dreyer 1729 posts

Libby has worked as a Senior Journalist at National Radio News since February 2011. She graduated with a Bachelor of Journalism from the University of Canberra in December 2010.

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NRN Bulletin 29/8/12

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