The long-term foreign currency sovereign credit rating of the United States is rated as "AA+" with a "stable" outlook, according to a statement that was issued by the credit rating agency Fitch on Friday.
Despite the fact that the economy has demonstrated resilience in the face of increasing interest rates, Fitch forecasts that the growth of the country's gross domestic product would slow down in 2024. This is despite the fact that the country has showed resiliency.
The fact that the economy of the United States expanded by 2.5% in 2023 was highlighted by the fact that there was a considerable deficit in the general government (GG) in that year.
A portion of this rise can be attributed to the ongoing liberalization of fiscal policies at the federal level. Fitch determined that the GG deficit had reached 8.8% of GDP in 2023.
This conclusion was reached on the basis of higher income growth, narrower spending, and a decline in some substantial one-time spending on deposit insurance in 2023. According to Fitch's projections, the deficit of Goods and Services would decrease to 8% of GDP in the year 2024.
"The interest burden, however, will continue to grow given the higher debt burden and impact of higher rates," Fitch added in conclusion.
The agency is of the opinion that the results of the upcoming presidential and congressional elections.
Which are due to take place in November, will have a significant impact on the process of policymaking, as well as the ability to approve and put into action laws. These elections are set to take place in the United States.
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