Australian Prime Minister Anthony Albanese gestures to the audience during the Labor party campaign launch ahead of the May 3 federal election, Perth, Australia, Sunday, April 13, 2025. (Lukas Coch/(AAP Image via AP)
SYDNEY: S&P Global Ratings has warned Australia’s prized AAA sovereign credit rating may be at risk if election campaign pledges result in larger structural deficits, debt and interest costs, highlighting fiscal pressures facing the next government.
“The budget is already regressing to moderate deficits as public spending hits post-war highs, global trade tensions intensify and growth slows,” analysts Anthony Walker and Martin Foo wrote in a note.
