Austria’s credit rating has been downgraded by the European agency Scope from “AAA” to “AA+” due to the country’s fiscal indicators diverging from those of other highly rated countries. This is mainly because of the effects of the Coronavirus pandemic and energy crisis.
Austria’s fiscal performance is under pressure due to recent structural policy changes and an aging population, which are expected to keep their structural budget deficit high and prevent a significant reduction in debt ratio in the near future.
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