To consider whether that was feasible, the authors analysed the global absorption capacity of three export industries steel, shipbuilding and machinery.

ECONOMIST: China's export prospects

And as the UK's debt problem will take longer to get under control, there will be a deterioration of the country's "shock-absorption capacity".

BBC: Q&A: UK credit rating downgrade

The downgrades were "driven by the increased risk of further shocks emanating from the euro-area debt crisis, in combination with the banks' limited loss-absorption capacity, " Moody's said.

WSJ: European Banks��Large and Small��Rely on ECB

German banks are at risk of continued asset deterioration as the crisis grows and the global economy slows, and they have limited-loss absorption capacity to face a stress scenario.

FORBES: German Banks Don't Have Enough Capital To Face A Severe Downturn, Moody's Says

There is still reason for alarm due to the nation's demographics and low tax revenue which will constrain capacity for debt absorption, create increasing cash outflows and create future concerns about market instability.

FORBES: Japan: Land Of The Rising Sum