The Organisation for Economic Co-operation and Development (OECD) report has claimed that debt amongst Brits will reach £1,260 billion next year. Worryingly, that figure represents 90 per cent of the country’s total gross domestic product of £1,400 billion. The leading think tank also issued predictions that unemployment will near ten per cent. The figures are a source of embarrassment for prime minister Gordon Brown, who had proclaimed a ‘golden rule’ of prudence during his time as chancellor that suggested that debt should never rise above 40 per cent of GDP.
It should be pointed out that official figures suggest that debt stands at 55 per cent of GDP, though this excludes the nationalised banks which would take the figure to 82.1 per cent. Critics have also pointed out that the official figures do not include certain Private Finance Initiative projects, which they claim are used to hide debt. The OECD has called for ministers to be ‘more ambitious’ in tackling the soaring deficit.
The level of national debt has soared since the economic downturn, with banks taking severe hits. Consumers have also struggled, with debts from credit forms such as personal loans, credit cards or mortgages showing few signs of alleviating despite a raft of interest rate reductions.
OECD Reveals Worsening Debt Problem
Wed, 01 Jul 2009
Recommended links
Types of DebtBankruptcy Guide
Coping with Debt
Budget Calculator
Debt Consolidation
Hounslow Residents Up To GBP20k in the Red
West Bromwich BS Seals Debt Deal
| news |
|---|
| Saving deemed less cost effective than paying down debt - Wed, 01 Feb 2012 |
| Mortgage holders saving rather than paying down debt - Mon, 30 Jan 2012 |
| Most expensive debt should be paid first - Fri, 27 Jan 2012 |
| More News |
