Fitch Ratings: ”State Budgets in the US Brace for Macro Uncertainties”
Fitch Ratings, the international credit rating agency with headquarters in New York, US and London, UK, said that state budgets in the US are preparing for the macro uncertainties ahead. It added that budgets are in a “much better position” going into fiscal 2023.
In a statement recorded by Fitch Ratings, it was shared that state budgets in the US are structured to tackle inflationary and macro pressures over the next few months.
It also emphasized that these budgets are in a “much better position” going into the 2023 fiscal year.
In the credit rating agency’s statement, it was stated that all 50 states in the country have enacted their budgets as the 2023 fiscal year approaches, which is an improvement over pre-Covid-19 dynamics, largely thanks to increased revenues.
Slower economic growth and rising inflation pose some downside risks, the statement said, underlining that the enacted budgets take into account potential economic and geopolitical headwinds.