United Kingdom, debt soars above 2 trillion for the first time – La Stampa

The crisis unleashed by Covid-19 is causing public debt to rise in many countries. Among the leaders of this particular race now there is also Great Britain. For the first time, the mountain of debt accumulated by London has exceeded the threshold of 2 trillion pounds (about 2.2 billion euros), with 227.6 billion more than in the same period last year. The figure, which is for July, is a record for the country and has also caused the debt / GDP ratio to rise, which has jumped above the level of 100% (to 100.5%) with an increase of 20.4 percentage points compared to the previous year.

For the United Kingdom, this is a ceiling that has not been reached since 1961, the year in which the country was still struggling with the weight of the costs of the Second World War. Great Britain is not alone in suffering. To make a comparison, in the first quarter the debt / GDP ratio in Italy rose to 137.6% from 134.8% in the fourth quarter of 2019. In all the 19 countries of the Eurozone it went from 84.1 to 1986, 3% and in the EU as a whole from 77.7 to 79.5%. The figure released today is frightening but for British experts the trend is up and for the fiscal year 2022/2023 an even higher public debt is expected, at 2.5 billion pounds.

Meanwhile, autumn is approaching with its unknowns. Among the topics in the focus in the United Kingdom there is also the Brexit agreement. For Mark Dowding, CIO of BlueBay, “with the restart of the Brexit talks, the hope is that the government will be able to obtain at least a meager agreement with the Union at the last minute in the coming weeks. However, in the face of the impending reality of the exit, it seems that there are still many aspects to be resolved and on which to find a compromise. For now, the Johnson government’s mantra seems to be that if something can go wrong, it will. ‘ The expert is convinced that an agreement will be reached in September but this too could prove to be a Pyrrhic victory. “From this point of view, we maintain a relatively negative view on sterling and UK assets,” says Dowding.