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In Domestic Affairs

UK has saved the AA credit rating – S&P

24th April 2021 Matthew Patridge

UK has saved the AA credit rating – S&P Pin It

Standard & Poor’s has maintained the UK’s credit status at AA with a stable outlook. It was reported by the American rating agency Friday night.

S & P expects a strong economic recovery in 2021 and 2022 thanks to the rapid vaccine roll-out. Furthermore, the budget deficit is falling this year while support measures are being lifted, according to the credit rating agency.

S & P predicts growth of 4.3 percent for the UK economy in 2021 and 6.8 percent in 2022. The budget deficit is expected to fall to 10 per cent of gross domestic product this year, from 16.5 per cent in 2020.

Economic activity in the United Kingdom grew even faster in April. The combined purchasing managers index for the United Kingdom rose from 56.4 in March to 60.0 in april. Thus, the index records at the highest level in 89 months. The Purchasing Managers Index for the services sector rose from 56.3 to 60.1, the highest point in 80 months. The preliminary index for industry rose from 58.9 to 60.7. This is even the highest level in almost 27 years.

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