Later last week, the New York city-based global credit rating agency, Fitch Rating Inc., often considered as one of the “big three” credit rating agencies alongside Moody’s and S&P, had kept Germany’s credit rating unchanged at “AAA” despite growing uncertainties whirling around the global-scale pandemic outbreak alongside a slanderous slump in demands, joining Moody’s and S&P to maintain Germany’s credit rating at the highest possible level given the ongoing circumstances, while the New York City-based credit rating agency had also added that the bloc’s largest economy’s strong policy response against the pandemic outbreak would likely to outweigh concerns related to the pandemic-driven financial fallouts.
However, apart from maintaining the Europe’s largest economy’s credit rating stable at “AAA,” the Fitch Rating Inc. had also added that it was expecting a sharp decline in Germany’s budget deficit next year, as the economy rebounded strongly and momentary fiscal lags appeared to have disappeared.
Pandemic in Europe losses strength as Germany ramps up expenses en route to fiscal recovery
In point of fact, latest credit rating for the eurozone’s largest economy by nominal GDP (Gross Domestic Product) came forth shortly after the German lawmakers were quoted saying that the nation’s health officials had reasons to believe that Berlin could prevail a second wave of pandemic outbreak and a €130 billion stimulus package approved last week would help the pandemic-hit economy recover over the second half of the year.
Aside from that, downplaying risks of a second pandemic outbreak in the Europe, a top health official working in an Italian hospital was quoted saying later last month that the pandemic pathogen in Europe appeared to be getting weaker, which eventually had spurred up optimisms of an earlier-than-anticipated recovery in eurozone’s economy, while the NY-based credit rating agency had also added on its statement that the German economy would likely to witness a contraction of 6.7 per cent this year, marking up the nation’s worst recession since the World War II.
Nonetheless, the pandemic pathogen in the United States alongside Brazil, Russia and India had been witnessing an upsurge in contagiousness. So far, more than 200 strains of the pandemic pathogen were detected across the globe.