Corona epidemic: Decline in the UK's debt rating

New delhi date. Saturday, October 17, 2020

The rating agency Moody's has downgraded the United Kingdom's (UK) debt rating as a result of the coronavirus hitting the economy, the Brexit issue and uncertainty over the government's budget plan.

Moody's downgraded Britain from AA2 to AA3. Belgium and the Czech Republic also have similar ratings. Britain, the world's sixth-largest economy, has been hit the hardest by a group of seven nations.

Britain's public debt has risen to more than ૨ 3 trillion, 100 per cent more than its GDP. Britain's growth is much weaker than expected and will continue to be so in the future, Moody's said in its report.

Britain is facing the biggest decline in the group of twenty countries. The Corona epidemic has had a serious impact on its service sector due to social discrimination and the possibility of an increase in Corona cases has had a serious impact on the UK economy.

He has been criticized by the opposition and members of his own party for his handling of the Corona epidemic. Britain has more deaths from corona than any other country in Europe.

Britain's budget discipline has been disrupted and its high debt burden is unlikely to come down anytime soon. Moody's believes spending cuts are politically difficult for the British government and that any tax increase would stifle economic recovery.