The credit rating agency Standards and Poor’s has downgraded US economy from the highest ranking AAA to AA+ after the US public deficit has increased to $ 14.3 trillion and is still increasing. This was four days back, on Thursday, 4th August.
Most of the European nations like UK,France, Germany are on AAA while Japan and China are AA- and India BBB-. The downgrading of US has been the first since 1917, about ten decades back. This is going to have serious repercussions in the global economy. Certain financial experts have predicted that this is going to be more serious than the global recession a few years back.
What will be its impact on India is yet to be seen.