The UK Office of Budget Responsibility (OBR) has announced that public debt could reach 300 percent of gross domestic product (GDP) in 50 years, with increased indebtedness due to high interest rates.
The UK Office of Budget Responsibility (OBR) has analyzed the long-term financial risks. In the light of current developments, four new risks have been added to the report, which includes 57 risks to the UK public finances, including persistent and high inflation, increasing geopolitical threats, cyber attacks and deglobalization.
In the report, it was reminded that public debt exceeded 100 percent of GDP this year, the highest level in the last 60 years, due to rising interest rates.
It was stated in the report that the public debt of the UK increased more and faster than other developed countries, and that this situation was due to high interest rates and inflation-related borrowing.
“If rising debt drives interest rates higher or if shocks over the next 50 years are as frequent and costly as those in the past two decades,” the report said. It will rise even higher.” it was said.
Net government debt in the UK reached 100.1 percent of GDP in May and exceeded 100 percent of GDP for the first time since March 1961.