https://sputnikglobe.com/20220707/uks-debt-to-reach-320-of-annual-gdp-in-50-years-if-measures-not-taken-obr-says-1097081760.html
UK’s Debt to Reach 320% of Annual GDP in 50 Years If Measures Not Taken, OBR Says
UK’s Debt to Reach 320% of Annual GDP in 50 Years If Measures Not Taken, OBR Says
Sputnik International
MOSCOW (Sputnik) - The debt of the United Kingdom will reach 320% of the country's annual GDP in 50 years if financial turmoil continues to afflict the... 07.07.2022, Sputnik International
2022-07-07T18:29+0000
2022-07-07T18:29+0000
2023-05-28T15:20+0000
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uk economy
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"Factoring in a stylised estimate of the asymmetric costs associated with inevitable periodic shocks would push debt up to 100 per cent of GDP by 2047-48 and nearly 320 per cent of GDP in 50 years," the agency said in a statement, adding that even without successive economic shocks, the debt will reach 267% of GDP in 50 years.In addition, if the UK increases spending on the defense industry from 2% to 3%, experiences a major cyberattack, and enters a global trade war, then the debt could reach 430% of GDP in 2071-72, the statement read."Bringing debt back to 75 per cent of GDP – the level at which it stabilised in the Government’s pre-pandemic March 2020 Budget – would need taxes to rise, spending to fall, or a combination of both, amounting to a 1.5 per cent of GDP additional tightening (£37 billion a year in today’s terms) at the beginning of each decade over the next 50 years," the statement added.In June, UK inflation rose to 9.1%, the highest figure in the last 40 years, according to the Office for National Statistics.
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UK’s Debt to Reach 320% of Annual GDP in 50 Years If Measures Not Taken, OBR Says
18:29 GMT 07.07.2022 (Updated: 15:20 GMT 28.05.2023) MOSCOW (Sputnik) - The debt of the United Kingdom will reach 320% of the country's annual GDP in 50 years if financial turmoil continues to afflict the country's economy, and taxes are not raised, UK Office for Budget Responsibility (OBR) said on Thursday.
"Factoring in a stylised estimate of the asymmetric costs associated with inevitable periodic shocks would push debt up to 100 per cent of GDP by 2047-48 and nearly 320 per cent of GDP in 50 years," the agency said in a statement, adding that even without successive economic shocks, the debt will reach 267% of GDP in 50 years.
In addition, if the UK increases spending on
the defense industry from 2% to 3%, experiences a major cyberattack, and enters a global trade war, then the debt could reach 430% of GDP in 2071-72, the statement read.
"Bringing debt back to 75 per cent of GDP – the level at which it stabilised in the Government’s pre-pandemic March 2020 Budget – would need taxes to rise, spending to fall, or a combination of both, amounting to a 1.5 per cent of GDP additional tightening (£37 billion a year in today’s terms) at the beginning of each decade over the next 50 years," the statement added.
In June, UK inflation rose to 9.1%, the highest figure in the last 40 years, according to the Office for National Statistics.
