- The United Kingdom has high monetary, labor, and product-market flexibility, and a wealthy and diversified economy.
- Output and employment growth have exceeded our previous projections, but the U.K.’s fiscal position has underperformed our expectations and has yet to reflect a strengthening economy.
- We are affirming our ‘AAA/A-1+’ long- and short-term sovereign credit ratings on the U.K.
- The stable outlook reflects our assumptions that the U.K. fiscal position will gradually strengthen as real-wage and productivity growth improve toward pre-crisis averages, and that the government that emerges from the May 2015 general election will remain committed to fiscal consolidation.
Our outlook also assumes the U.K.’s ongoing EU membership.