Australia’s AAA credit rating provides fiscal security and certainty for investors

International ratings agency S&P Global has reaffirmed Australia’s AAA credit rating, one of only 9 countries to be rated AAA by all 3 major credit rating agencies.

In its latest report, S&P said Australia’s fiscal metrics supported its AAA long-term sovereign credit rating, noting Australia’s fiscal performance and economic outlook were both sound. It also found that Australia’s ‘excellent political and institutional settings are conducive to stable policymaking’.

A secure and stable investment destination

Australia’s economic and business fundamentals make the country an ideal destination to establish or expand a business.

According to the International Monetary Fund (IMF), Australia’s economy grew by an average of 2.1% a year between 2019 and 2024. This was faster than the 1.7% average growth for advanced economies.

The IMF also expects Australia to keep growing. Between 2025 and 2030, IMF forecasts Australia’s economy will grow by 2.2% a year, compared with 1.6% for advanced economies.

‘For multinational corporates, global pension funds and sovereign wealth funds looking at where to commit capital, Australia’s AAA rating is not just recognition of past performance – it’s reassurance for the future,’ says Peter Horn, General Manager, Investment, Australian Trade and Investment Commission (Austrade).

Strong global ties also make Australia a prosperous trading nation. The nation’s 19 bilateral and multilateral trade agreements cover trade and investment with some of the world’s largest economies, including the US, China, Japan, India and, most recently, the United Arab Emirates.

Australia’s trade agreement with the UAE includes a stand-alone Investment Agreement and 5 signed MOUs in priority sectors: green energy, data centres/AI, food and agriculture, minerals, and infrastructure development.

Australia’s political stability, transparent regulations, and strong institutions foster a secure and thriving business environment that provides certainty for investors.

‘In an uncertain global environment, very few markets can offer both strong growth potential and sovereign stability,’ says Mr Horn. ‘Australia’s long-term AAA rating signals to investors that this is a place where capital is protected, risks are well managed, and long-term investments can thrive.’

A partner of choice in the net zero transition

With abundant renewable energy potential and significant mineral resources, Australia is well positioned to strengthen priority supply chains. Australia has a global reputation as a safe destination for large-scale investments in renewable energy, thanks to world-leading sustainable industry practices and strong environmental, social and governance (ESG) standards.

The Australian Government is investing A$22.7 billion (US$15.2 billion) over the next decade as part of its Future Made in Australia plan. This plan encourages and facilitates private sector investment and presents significant opportunities for investors in renewable hydrogen, critical minerals processing, green metals, low carbon liquid fuels, and clean energy manufacturing.

Australia’s economic and business fundamentals make the country a secure destination for investment, including in large-scale renewable energy projects.

A leader in advanced technologies

Australia’s multibillion-dollar advanced technology sector also offers strong investment and partnership opportunities. Investors will find a large, multi-skilled workforce, world-leading tech companies, and universities and research institutions undertaking cutting-edge R&D.

Multinationals such as Amazon, Dell, Google and Microsoft are investing in Australian digital infrastructure, building their AI and cyber capabilities, and partnering with Australian universities to further their product development and strengthen capabilities.

The Australian Government has identified critical technologies such as AI, quantum, advanced manufacturing, and clean energy generation and storage as critical to Australia’s economic prosperity, national security and social cohesion. The Government is focused on attracting overseas investors and partners to grow Australia’s capability in critical technologies.

How Austrade can help

The Australian Trade and Investment Commission (Austrade) supports foreign investors to establish and expand operations in Australia. Our experts in Australia and around the world can help you through every stage of your investment journey.

We offer the latest industry insights, connections with key stakeholders and decision-makers, and virtual or physical site visits to Australia. Thousands of foreign businesses have worked with us to tap into the Australian market.