UK budget deficit third worst in the world
The OECD has today issued a league table showing budget deficits around the world as a percentage of Gross Domestic Product (GDP). While the top two entries in the table will come as no surprise, Iceland at 15.7% and Greece at 12.7% it is the position of the UK (third place) at 12.6% which has laid bare the terrible financial impact which the downturn has had on the country's finances.
It looks even more alarming when you consider that Ireland at 12.2%, Spain at 9.6% and Portugal at 6.7% are being spoken about in the same breath as Greece which is on the verge of economic collapse. While it is highly unlikely that the UK is on the verge of collapse there is no doubt that with over £1 trillion of national debt to be paid back and financed in the future, the UK economy will take some time to recover.
When you also throw into the mix the fact that UK consumers also have debts of over £1 trillion the situation becomes even more alarming. Even though there is little or no risk of the UK economy crumbling and collapsing it will take many years to replenish and rebuild the country's financial strength which will impact upon both the cost of living and the standard of living in the UK.
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