International credit rating agency Fitch Ratings reported that the credit ratings of Germany and the UK have been confirmed.

According to the statement from the credit rating agency, Germany’s long-term foreign currency credit rating was affirmed as “AAA” with a “stable” outlook. The announcement highlighted that Germany’s credit rating is supported by its high per capita income, large and diversified economy, strong institutional framework, high current account surplus, and positive net international investment position. Despite its strengths, the statement noted that Germany faces some structural challenges that negatively impact growth expectations, with the country’s post-pandemic economic performance expected to remain weak due to external shocks and structural factors. The statement also mentioned that due to uncertainties related to elections and potential US tariffs putting pressure on economic sentiment, it is expected that the German economy will show modest growth of 0.3% in 2025.

EXPECTED TO RISE TO 1% In the agency’s statement, it was indicated that with the reduction of these uncertainties and the implementation of measures by the new government to support growth, economic growth is expected to rise to 1% in 2026. Another statement by Fitch confirmed that the UK’s long-term foreign currency credit rating was affirmed as “AA-” with a “stable” outlook. The announcement conveyed that the UK’s rating reflects a high-income, large, diversified, and flexible economy, a reliable macroeconomic policy framework, deep capital markets, and the international reserve currency status of the pound which provides ample financing flexibility. It was mentioned that the growth forecast for the country for this year has been revised down from 1.5% to 1.2%, attributing this to lower-than-expected activities due to weak consumer and business confidence, a decline in net exports, and a cooling labor market. The statement noted that with the impact of loosening monetary policy and some recovery in investments, the UK economy’s growth is expected to increase to 1.7% in 2026.