Analysis: Great Britain’s Economic Uncertainty Directly Led to Credit Downgrade

by Colonel on February 24, 2013

“The challenge … was underscored by two statistics released Friday in a widely anticipated European Commission economic forecast for the European Union.

The first is that despite presiding over one of the longest and highest-profile European austerity campaigns, the British government will end this year with a primary deficit — the purest measure of how much more a government spends than it receives in taxes — of 4.3 percent of gross domestic product. That is by far the highest such figure in Europe. …

The second is that even though the pound has lost up to a third of its value against major currencies since the onset of the financial crisis, Britain this year will be the only developed economy in the world that will register a current account deficit that will be higher, at 3.1 percent of G.D.P., than it was in 2009.

” — Landon Thomas Jr., Copyright 2013 The New York Times Company

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