Tuesday 29 May 2012

UK debt far worse than USA's

Reading Richard Murphy's Tax Research website, I see that Paul Krugman has graphed UK public debt since 1900 and really, it's implied, we're not in that bad a situation right now.

But you have to look at the total weight of debt in the economy, not just the government part. McKinsey did this in January and as of Q2 last year, the UK's total debt-to-GDP exceeded 500%, putting us pretty much on a par with Japan and far above eight other major economies:

And we don't have an industrial - and industrious - base like Japan's.

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Unknown said...

If this so, then what will happen to United Kingdom if Greece will leave the euro zone? I know Greece will have the great disadvantages, but this will have an impact to United Kingdom's economy too, right?

By: exchange rates

Sackerson said...

Hi, Rusty. Yes, you are right, because our banks will suffer more losses. Also if the European economy slows down it will affect our exports.