- May 21, 2009 at 1:26 pm #55011
So much for the “green-shots-of-recovery”. As predicted, the worst is yet to come…
Foreign property might be the least worry…
“International ratings agency Standard and Poor’s on Thursday downgraded its outlook on Britain’s economy to “negative” from “stable” owing to the country’s “deteriorating public finances.”
The change may eventually lead to S&P downgrading Britain’s top-level sovereign credit ratings, the agency warned in a statement.
“The outlook revision is based on our view that, even factoring in further fiscal tightening, the UK’s net general government debt burden may approach 100 percent of GDP (Gross Domestic Product) and remain near that level in the medium term,” S&P said in a statement.
Britain’s public deficit ballooned to a record 8.5 billion pounds (9.6 billion euros, 13.22 billion dollars) in April as the Labour government was forced to bail out ailing banks and recession slashes tax revenues, according to official data published Thursday.”
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