Moody's warned of a sharp decline in the British economy compared to other major economies this year, and raised its estimate of public debt as a proportion of gross domestic product by about a quarter. >
According to Reuters, Moody's said the latest stimulus package offered by the British government, worth 30 billion pounds ($ 37.9 billion), which was announced this week, would help the economic recovery. Progressive but it will add more pressure on the financial position of the United Kingdom.
A group of senior Moody's analysts wrote in a UK public debt ratio note of GDP that will increase by 24 percentage points or more compared to 2019 levels.
"We expect the UK's GDP to contract by 10.1 percent this year, but we expect a recovery later on the back of easing public isolation measures, with growth recovering to 7.1 percent a year," she added. Next.
Moody's ranks Britain at Aa2 with a negative outlook after a series of cuts since citizens of the country voted to exit the European Union in mid-2016.
Moody's said that very frequent indications are that economic activity has begun to recover gradually after hitting the bottom in April, when the economy contracted by just over 20 percent, according to Moody's. Estimates.
Our expectations indicate a sharper contraction from the peak to the bottom of the UK more than any other G20 economy, bearing in mind our view of the continuing fog surrounding the exit, she added. Britain from the European Union will curb recovery in the second half of the year.
