FED:US facing substantial challenges: Swan

AAP General News (Australia)
04-19-2011
FED:US facing substantial challenges: Swan

CANBERRA, April 19 AAP - The debt challenges facing the United States could not be
more different to the situation in Australia, Treasurer Wayne Swan says.

Global credit rating agency Standard & Poor's downgraded the US outlook on Monday from
stable to negative, saying its AAA rating was at risk unless policy makers agree on a
plan to reduce it budget deficit and US national debt by 2013.

Mr Swan said the US is facing some substantial fiscal challenges, but it has got a
big, dynamic and diversified economy which is starting to recover.

"The debt situation in the US and in a number of other advanced countries could not
be more different to the situation in Australia," Mr Swan said in a brief statement.

He said Australia's net debt will peak at less than a 10th of the peak in the US and
the government's strict fiscal rules will have the budget back in surplus in 2012/13.

"The situation in the US shows how important it is that difficult decisions such as
necessary spending cuts are not delayed until such time that they need to be harsher and
deeper," he said.

Mr Swan will deliver his fourth budget on May 10.

AAP cb/sb/nb

KEYWORD: US SWAN

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