Moody's expects Brexit to negatively impact IoM

Thu, 29 Sep 2016

Credit ratings agency Moody's believes the UK's decision to leave the European Union will have a negative impact on the Isle of Man.

The organisation, which rates the economies and credit status of Governments and states around the world, highlights the Island's ties to the UK and relatively small economy as reasons for concern.

The agency is forecasting that the growth of the Island's economy will drop to 3% over the next two years as a result of uncertainly surrounding the recent referendum.

The Isle of Man has an Aa1 sovereign rating with Moody's, indicating a low-credit risk and ability to repay short-term debt.

The latest Manx Government figures, which were published earlier this week, showed the Gross Domestic Product grew by 5% in the 2014-15 financial year.