The ratings on the U.K. are supported by: A wealthy, highly diversified, export-oriented economy; High fiscal flexibility, underpinned by low general government net debt (34.6% of GDP in fiscal 2003/2004), as well as the longer-term sustainability afforded by early social security reforms; A long-standing democracy producing stable majorities and a powerful executive; and Low price inflation, supported by the Bank of England's operational independence. The U.K. is on track to record its 13th year of uninterrupted economic growth in 2004. During this period, the growth performance has outshone that of most 'AAA'-rated peers. The U.K. has also been significantly more successful at weathering the global economic downturn starting in 2001, with output growth in 2003 expected to be 2.0%, before
