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UK's government debt burden may reach 100% of GDP

Can you imagine this! The outlook in the UK has been downgraded by Standard & Poor's to negative from stable. To underscore the dire economic circumstances in the UK, Standard & Poor's David Beers said: "We have revised the outlook on the UK to negative due to our view that even assuming additional fiscal tightening, the net general government debt burden could approach 100% of GDP and remain near that level in the medium term." Yet the Agency did maintain the UK's long term sovereign credit rating at AAA.

The report triggered a drop of 1.2% in the pound to $1.5529 to the dollar and 1.4% against the euro to .8866 pounds.

Continue reading UK's government debt burden may reach 100% of GDP

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Last updated: May 27, 2012: 03:48 PM

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