Triple-Dip Recession Threatens U.K. Credit Rating
The United Kingdom is the latest developed nation to be threatened by a credit agency that sees its sovereign prospects as weakening.
Many economists believe the nation has tipped into a triple-dip recession. Austerity measures probably have started to work against an economy that needs financial stimulation. And Britain may withdraw from the European Union eventually, which might hurt its trade prospects.
The future of the United Kingdom remains much better than that of most other EU members, but may be little better than France's and much worse than Germany's.
The U.K. faces a "significant" risk of losing its triple-A rating, as its economy has worsened since it was placed on negative outlook last year, David Riley, Fitch Ratings global managing director for sovereign ratings. We have had the U.K. on a negative outlook for almost 12 months and during that period, the economic and the fiscal outlook has actually deteriorated," Riley said.
Filed under: 24/7 Wall St. Wire, Economy, International Markets