Australia avoids rating downgrade after revised forecasts

The resource-driven Australian economy's credit rating is dependent on a return to a budget surplusAustralia avoided a feared downgrade of its coveted AAA credit rating Monday after sticking to its ambition of returning the budget to surplus in 2020-21 despite softer growth forecasts. In a mid-year fiscal update, the government revised down the nation’s cash deficit of Aus$37.1 billion (US$27 billion) in 2016-17 — as announced in the May budget — to Aus$36.5 million. “The government’s plan to restore the budget to balance remains on track,” Treasurer Scott Morrison said in a statement.

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