The UK Economy in Serious Debt Trouble

by on 31 August, 2011

Britain’s debt levels are dangerously high and are damaging the economy, according to one of the world’s leading financial watchdogs.

It means the country is in the danger zone following a ten-year borrowing binge under the last Labour government, a hard-hitting report from the Bank for International Settlements has revealed

The Bank for International Settlements (BIS) said government, corporate and household debt in Britain jumped from 223 per cent of gross domestic product in 2000, or £2.18trillion, to 322 per cent, or £4.68trillion, in 2010. That is the equivalent of £180,000 per household

In 2010, Britain had government debt of nearly 90 per cent of GDP, corporate debt of 126 per cent and household debt of 106 per cent.

UK PM David Cameron should seriously re think his commitment to phasing out the production of energy based on burning of fossil fuels as it is going to cost the UK economy at least £300 billion over the next 10 years to go renewable energy (which we all know works intermittently).

What is it with Labor and debt? They’re like junkies to a needle.

While our government debt of 15.4% of GDP is low compared to the UK, the trend is more concerning.

Andy Semple

Follow him on twitter @Bulmkt

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