Posted on: 23rd November 2011 in Finance
There’s a lot of talk about government debt-to-GDP ratios lately (well, there is in the pubs I frequent). Greece’s government debt stands at 160 percent of GDP. Japan has a debt-to-GDP ratio of over 200 percent. Then there’s Italy, Ireland and Portugal with debt-to-GDP ratios of 121 percent, 109 percent and 106 percent respectively. Even America’s government debt has recently reached the 100 percent of GDP level. Next to these figures the UK government’s debt-to-GDP ratio of 77 percent doesn’t look so bad. However, government borrowing is just one component of a country’s total obligations. As the chart below shows, when you factor in private sector debt it turns out the UK is actually the most indebted country of all: The UK’s combined business and household debt is significantly larger than any other major developed economy. And when you add in government debt that takes the UK to the top of the debtors table. At 500 percent of GDP the UK’s total debt burden puts the country in a precarious position. If credit markets freeze up again (ala 2008) things could get as ugly for the UK as they currently are for Italy, Greece, Portugal, Ireland, etc, etc. Here’s what the BBC’s Robert Peston has to say on the subject: UK’s debt ‘biggest in the world’
We have 18 offices across the globe and we manage over $2billion for our 20,000+ clients
Get startedAs we navigate through life, one thing remains certain: change is inevitable. Whether in our personal or financial lives, a solid plan for the future is crucial. When it comes...
Read moreInvesting is a powerful tool. It can help build long-term wealth, achieve financial goals and secure your future. The question people often have is, ‘How do I know when I’m...
Read moreThe Conservative Party appears to be a ship heading towards an iceberg. When Ipsos published its latest UK opinion poll results and voting intention in February 2024, it showed Labour opening up...
Read moreLike other styles and trends, Christmas decorations have evolved and changed over time. Those of us of a certain age will undoubtedly remember the staple holiday décor of decades past....
Read more