Akhir 19, 1432 H/March 24, 2011, SPA -- Britain is dependent on what may be over-optimistic forecasts of strong growth in 2013 and 2014 to meet deficit-reduction targets needed to keep its triple-A credit rating, Reuters cited analysts as saying on Thursday. Finance minister George Osborne's 2011 budget on Wednesday contained a downgrade to growth forecasts for this year and next. This puts a greater onus on an economic rebound from 2013 onwards for his Conservative-Liberal Democrat coalition to eliminate the budget deficit before the 2015 national election. Ratings agency Moody's said on Thursday that it was keeping a close eye on the growth outlook following the budget changes. "Slower growth combined with weaker-than-expected fiscal consolidation could cause the UK's debt metrics to deteriorate to a point that would be inconsistent with an AAA rating," it said in a statement. Ratings agency Fitch made a similar point in a note late on Wednesday. Preserving the triple-A sovereign debt rating that Britain enjoys from the major ratings agencies is a top economic priority for the coalition, which inherited a deficit greater than 10 percent of gross domestic product. Osborne's fiscal plans are heavily constrained by forecasts from the Office for Budget Responsibility, an independent government body that provides macroeconomic and fiscal forecasts and is given advance notice of tax and spending changes.
