Political uncertainty in Australia could dampen business sentiment - Moody's

FXStreet (Mumbai) - Moody’s associate managing director Atsi Sheth said on Tuesday that, "if political uncertainty leads to economic policy uncertainty or dampens business sentiment, it would add to the challenges facing the Australian economy."

Her statement comes after Malcolm Turnbull was sworn in as new the prime minister of Australia on Tuesday.

While leadership changes normally don't pose a risk to a country’s sovereign credit rating, the current change "occurs at a time when economic and fiscal challenges are rising," she said, adding that "a multi-year period of strong growth supported by commodity-related investment and exports has come to an end."

"It is not yet clear to what extent Australia’s still competitive and flexible economy can develop sources of growth that offset the impact of weaker demand from China," Sheth concluded.