The U.K.’s debt growth forecasts are pretty ugly, but not ugly enough says the Washington-based International Monetary Fund.
The fund has just warned that U.K. debt could nearly double from its 2007 debt-to-GDP level of 44.1% to 83.9% in 2015 according to the Telegraph.
This is substantially higher than the Office for Budget Responsibility’s (OBR) forecast of just a 69.4% debt-to-GDP ratio by 2015.
They don’t have kind words for the rest of Europe’s major economies either, warning that, “Under the current and future pressures on public finances, public debt would spiral out of control in the absence of fiscal adjustment. Under unchanged policies, the net debt-to-GDP ratio of the G7 economies would reach 200pc by 2030 and exceed 440pc by 2050.”