Steady growth, combined with dynamic public and private spending has prompted Coface to remove the UK from its negative watchlist. The credit solutions specialist believes there are grounds for optimism in 2004 as industrial exports benefit from the delayed effects of Sterling's recent decline against the euro. This should help to offset the impact of Sterling's strength against the US Dollar, which is affecting the competitiveness of UK exports there (despite the ongoing US recovery).
The news means that the UK has a country rating of A1, reflecting its stable political and economic situation and very low likelihood of payment default. This compares favourably with a rating of A2 for much of the euro zone, including France, Germany, Italy and the Netherlands, where the economic recovery remains unconvincing.
