Standard & Poor's Confirms U.S. Credit Rating

Standard & Poor's Confirms U.S. Credit Rating

International credit rating agency Standard & Poor’s (S&P) confirmed the long-term credit rating of the US as "AA +" and determined its outlook as "calm". In the statement, it was stated that the rating for the USA reflects the diversified and durable economy of the country and the flexibility of comprehensive monetary policy. The statement stated that it was restricted by government debt and fiscal deficits, and this is expected to worsen this year in the economic downturn due to the increased spread of the new type of coronavirus (Covid-19) outbreak. The statement highlighted that economic recovery is expected and pointed out that this will provide a moderate financial recovery next year. The statement, which also includes the forecasts regarding the economic growth of the USA, included information that the country's GDP is expected to contract by 1.3 percent this year and 3.2 percent in 2021. In the statement that it was stated that the unemployment rate in the country may exceed 10 percent in the second half of this year, it has been suggested that the rate will decrease to 7 percent at the end of the year and below 6 percent in 2021. The statement also stated that the inflation rate is expected to be 0.1 percent this year and to be 2.5 percent in 2021.