Chief investment officer
‘Changes in national ratings by the ratings agencies tend to reflect the blindingly obvious. Indeed, if the agencies had shown any degree of prescience, they would have warned about the implications of growing imbalances in the world economy years before they hit crisis levels.
‘That the UK is in a tricky economic position has been plain for all to see for a long period, both pre- and post-crisis. More to the point, perhaps, over the past few years the UK has been establishing a better base for growth. That growth has to be led by wealth creation in the private sector. This, in turn, has to be supported by confidence in the outlook for the world economy and in the UK government’s determination to rein in its own budgetary excesses.
‘As that confidence builds, then the UK will return to growth. Ironically, although the pace of that growth may seem disappointing in the context of pre-recession rates, it should be more sustainable.’