Sustained emigration would weaken UK growth potential and increase fiscal challenges – Moody’s

Early Tuesday morning in Asia, global rating agency Moody’s came out with their analysis of the UK economy.

“Sustained emigration from the UK (Aa3 stable) would lead to labour shortages in some sectors, weaken growth potential and intensify fiscal challenges, Moody's Investors Service said in a report published today. Recent data suggests the UK's foreign-born population fell steeply in 2020, with London in particular seeing the largest outflows,” said the report.

It was also mentioned that the sizeable government support measures will help to keep unemployment in check, as the economy recovers from the pandemic shock and the jobs-rich services sector slowly returns to normal.

Market reaction…

Earlier in the day, Times came out with the news suggesting that the British policymakers are considering plans for a local lockdown of delay in the unlock deadline, due to the spread of the Indian variant of the coronavirus (COVID-19).  However, neither the current news nor the previous one could affect the GBP/USD that awaits today’s UK jobs report for April.

Read: GBP/USD rises above 1.4120 as the US dollar losses momentum