Credit ratings agency Standard & Poor’s (S&P) maintained the US credit rating at AA+ with stable outlook after Donald Trump won the presidential election. The Republican Party also retained majority control of the House of Representatives and the Senate.

S&P said: “We as­sume the longstanding institutional strengths and robust checks and balances of the US will support policy execution in a Trump administration, despite the President-elect’s lack of experience in public office, which raises uncertainty on policy proposals”.

The credit rating agency also said that if evidence shows that proactive fiscal and public policies are resulting in a lower debt burden it would raise the country’s rating.

Meanwhile, the European Commission raised its eurozone growth forecast for this year and reduced it for next year. Eurozone growth is set to slow next year mostly as a result of Brexit and uncertain economic trends in Chi­na. The EU said eurozone growth for this year will reach 1.7 per cent, from 1.6 per cent it predicted in its previous projections.

The Commission also revised down its growth projection for next year to 1.5 per cent from 1.8 per cent. The eurozone economy is expected to grow by 1.7 per cent in 2018.

In Germany, industrial production fell the most in two years in September as growth shifted into a lower gear due to an uncertain summer for manufacturers. Month­ly output fell by 1.8 per cent month-on-month in September, reversing a three per cent rise in August.

September’s industrial output drop was the biggest since August 2014 when output fell by 2.4 per cent and was deeper than the modest 0.2 per cent decline forecast. Year-on-year, industrial output growth fell to 1.2 per cent in September from 2.4 per cent in August. The growth rate was expected to slow to two per cent.

The Economy Ministry said factors such as high level of construction orders and improvement in sentiment indicators show a recovery in production in the coming months.

This report was compiled by Bank of Valletta for general information purposes only.

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