S&P Global cuts UK 2020 GDP forecast to -9.7% vs. -8.1% previous


In its latest review outlook on the UK economy, the US-based rating agency, S&P Global, cuts its GDP forecasts for 2020, although upgraded its 2021 economic growth estimates.

Key quotes

“S&P Global cuts UK 2020 GDP forecast to a 9.7% fall versus the previous forecast of -8.1%.”

“The UK economy now seen rebounding 7.9% in 2021 vs. 6.5% in June forecasts.”

“A hard Brexit leading to new import and export tariffs, as well as non-tariff trade barriers would add another layer of challenge for European companies, and be especially detrimental for the UK economy.”

Market reaction

The GBP/USD pair edges higher expectant of the UK job protection scheme likely to be unveiled by the Finance Minister Rishi Sunak in an hour’s time.

The spot was last seen trading at 1.2747, up 0.22% on the day.

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