IMF warns on UK debt mountain

The IMF (International Monetary Fund) has today warned a number of countries around the world, including the UK, that long-term fiscal reform is required to address ever growing national debt. This comes with a forecast that UK gross debt to gross domestic product will increase from a figure of 44% in 2007 (prior to the credit crunch) to in excess of 90% by 2015. UK debt is expected to top £1 trillion in the medium-term which is something that the IMF, along with authorities around the world, is obviously concerned about.

While the situation in the UK is obviously concerning many, there will be even greater concern to find that over the same period US gross debt to gross domestic product is expected to rise from a ratio of 62.1% to an enormous 109.7%!

These figures blow apart hopes that the UK and the US economy are back on the growth and further highlight the very challenging situation ahead. Of more concern is the fact that the US economy appears to be turning down once again after a period of relative growth, something which the UK also appears to be mirroring. As we have mentioned on numerous occasion, the after effects of the credit crunch and resulting worldwide recession will be felt for many years to come.