Fitch punches big hole in corporate tax cut as stimulus

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Via Fitch today:

Economic fallout due to the coronavirus pandemic is the greatest risk for Australian credit markets over the next 12 months, according to 74% of Australian fixed-income investors that took part in the 2020 Fitch Ratings/KangaNews Australian fixed-income investor survey. A hard landing in China and a domestic housing market downturn were nominated as the next two highest risks, but both can be considered direct consequences of the pandemic’s negative impact on global economies.

Survey responses were gathered in early-to mid-March 2020, a period marked by the early onset of the pandemic in Australia, where events were unfolding rapidly. It also preceded a number of the strict government-initiated social distancing measures and sizeable economic assistance packages. Like many, our respondents were grappling with developments, but the results paint a meaningful and clear picture of serious concern for the economic outlook.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.