After the mini budget which was out on Friday the ratings agency S&P Global revised its outlook for the Sovereign Credit of Britain.
“The Government’s decision to abandon most of the unfunded budgetary measures proposed in September 2022 has bolstered the fiscal outlook for the UK,” this was said by S&P.
S&P maintained a rating AA for the Government of Britain Debt and now it has a stable rating for the Government.
The British Government under Rishi Sunak has reversed most of the measures of Truss. The measures of Truss got in a lot of panic in bond markets, this panic forced the Bank of England to come in between with billions of pounds of purchases of bonds.
S&P said that it expected the British economy to decrease its output by 0.5% this year.
It is expected to grow by 1.6% a year between 2024 and 2026.
“Near-term downside economic risks have reduced. That said, we forecast medium-term growth will be below historical averages,” it said.
“The economic situation remains fragile.”
S&P expressed approval of the agreement reached in February between the United Kingdom and the European Union concerning the trade arrangements for Northern Ireland, a British province that has remained under EU regulations following Brexit because of its unguarded border with Ireland.
“Although the direct short-term economic effect is unlikely to be significant, the agreement could eventually help improve UK-EU relations and, in turn, augur well for UK trade with the EU related investment activity,” S&P said.
- Published By Team Nation Press News