The government’s overall deficit is expected to fall to 3.3% of GDP by 2026, from an expected result of 5.6% of GDP this year.
Standard & Poor’s reaffirmed the UK’s rating at AA, with a stable outlook. The agency estimates that the country’s economy must grow by 0.4% in 2023 and 2024, before presenting a more stable picture, with an increase of 1.5%, from 2025 onwards.
Standard & Poor’s says the UK economy faces several headwinds, such as rising inflation, rapid tightening of monetary policy and credit conditions, as well as a “relatively weak” external outlook.
It expects inflation, in turn, to slow from an increase of 7.5% in 2023 to a rise of 2.5% in 2024.
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The government’s overall deficit is expected to fall to 3.3% of GDP by 2026, from an expected result of 5.6% of GDP this year.
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