United Kingdom Economic Situation
* In brief
* UK’s Rating in Question
* Europe’s Responsibility in UK situation
* How Does the UK Respond About Fiscal Integration?
* 2012 Forecasts
United Kingdom in brief:
GDP per capita: $35,646 (17th)
Public debt: 62,8% of GDP over a trillion since beginning of the year. Balance of trade is negative. London is the world's largest financial centre alongside New York and has the largest city GDP in Europe.
UK’s Rating in Question:
Recently, François Baroin complains it was not fair that the US credit ratings agencies should be threatening France's triple-A listing. "The economic situation in the United Kingdom is very worrying," Baroin said. "One would rather be French than British at the moment." When comparing the U.S. to other countries with ‘AAA’ long-term ratings, we observe that the trajectory of the U.S.’s net public debt is diverging from the others. Including the U.S., experts estimate that the five sovereigns (Canada, France, Germany, U.K) will have net general government debt to GDP ratios in 2012 ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt at 74%. By 2015, they project that their net public debt to GDP ratios will range between 30% (lowest, Canada) and 83% (highest, France), with the U.S. debt at 79%. However, in contrast with the U.S., they that the net public debt burdens of these other sovereigns will begin to decline, either before or by 2015. Moody’s calculation that the UK government exhibits a high degree of debt is supported by the tendency over recent months towards an agreement among the public that fiscal cost-cutting (including cuts in expenditure) is both inevitable and desirable.
The eurozone debt crisis will inevitably have implications for the UK economy. But this does not necessarily mean that the...
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