The borrower is on a trend decline amid uncertainty about the outcome of early elections in July. It means New Zealand is looking the safer bet, despite its slightly lower ECR score and inferior credit rating.
|Keeping his eye on the ball: Australian prime minister Malcolm Turnbull’s neck|
is on the line as the opposition Labor Party gains ground
Australia, on a country-risk score of 81.02 from a maximum 100 points, and New Zealand, on 80.57, are both tier-one credits.
Euromoney’s survey is collated quarterly, with the latest readings before Australia's prime minister, Malcolm Turnbull, called for a double dissolution federal election. Scheduled for July 2, this involves all members of the Senate and House of Representatives, and is aimed at resolving the legislative deadlock blocking Turnbull's government’s agenda.
At present, Turnbull’s Liberal/National Coalition is running neck and neck in opinion polls with Bill Shorten’s Labor Party, contributing to policymaking uncertainty about the two camps’ priorities and the margin of victory affecting government stability.
Robin Clements, senior economist for UBS New Zealand, says this is a bigger risk than usual.“Compared with previous elections there is a more distinct choice, where Labor is proposing several policies regarded as business unfriendly,” he notes.
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