Victim of the financial crisis and recession have fallen the British government
, the deficit of the country goes to the 20.3 billion pounds in November, rising to unprecedented levels after 1993.
While standing at slightly lower levels than expected, the net public debt amounted to 844.5 billion pounds (60.2% of GDP), against 706.2 billion pounds, was last year.
Britain accepted strongest hit by the international recession, compared with other economies, says the Moody’s in its report on Britain. Production fell to 5.8% versus 5.1% in the euro area and the growing public sector and the sharp correction in house prices made the country more vulnerable.
The international rating agency also noted that Britain has lower rates of recovery compared with other economies. Measures believes that boost the British economy is one of the aggressive monetary policy combined with increased public spending and stimulating exports and consumption.
According to estimates of Komision imposing stricter regulations on lending would lead to an increase in debt in Britain at 90% of GDP by 2012. This means imposing higher taxes on households and businesses, and reducing public expenditure in the coming years, warns Moody’s.