8 Jun 2015
UK will enjoy solid growth, high debt burden to stay until 2017 – Moody’s
FXStreet (Mumbai) - The rating agency Moody’s, in its annual UK credit analysis, said the UK’s economic growth will likely remain solid in 2015-16, but its high debt burden remains a key weakness.
According to Moody's, the UK's economic growth will likely remain robust, with real GDP forecast to increase by 2.7% and 2.4% in 2015 and 2016, respectively. However, the economy may face long term challenges if the weak productivity persists.
Meanwhile, the rating agency views the government's track record and continuing strong commitment to reduce the elevated budget deficit as credit positive.
As per Kathrin Muehlbronner, a Senior Credit Officer, “the UK's economic growth pattern remains relatively unbalanced and mainly driven by domestic demand and the services sector, while exports and manufacturing remain subdued.”
According to Moody's, the UK's economic growth will likely remain robust, with real GDP forecast to increase by 2.7% and 2.4% in 2015 and 2016, respectively. However, the economy may face long term challenges if the weak productivity persists.
Meanwhile, the rating agency views the government's track record and continuing strong commitment to reduce the elevated budget deficit as credit positive.
As per Kathrin Muehlbronner, a Senior Credit Officer, “the UK's economic growth pattern remains relatively unbalanced and mainly driven by domestic demand and the services sector, while exports and manufacturing remain subdued.”