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How sustainable is government debt?

As of March 2022, UK government debt sat at 99.6% of GDP. In this article Steven Proud explains government borrowing, some of the factors that affect interest rates on this debt, and at what point it might become unsustainable

macroeconomics, economic policy objectives and indicators, inflation, public sector finances

In January 2008, before the main effects of the global financial crisis hit, the UK government had total debts of £520 billion. Since then, borrowing has increased to over £2,400 billion (£2.4 trillion), first due to the increased spending and revenue resulting from the financial crisis, and second because of the economic impact of Covid-19.

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Previous

Interest rates

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Pensions and automatic enrolment

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