Britain’s debt now exceeds total GDP for the first time in 57 years

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Massive borrowing to finance the fight against the coronavirus means that the debt of the United Kingdom is now greater than the total of the economic production of the country for the first time since 1963, revealed official statistics.According to the Office of National Statistics, ministers borrowed a record £ 55.2 billion in May, sending public sector borrowing nine times more than the same period last year.

This means that the mountain of UK debt has now increased to exceed annual production for the whole country.

The UK total represents 100.9% of the country’s gross domestic product, the first time in 57 years.



The total for the United Kingdom represents 100.9% of the country’s gross domestic product

Borrowing in the current year, April and May, is estimated at £ 103.7 billion, up £ 87 billion from the same period last year. and the highest two-month period ever.

The borrowing estimated by the ONS for the 2020-21 fiscal year will reach £ 298 billion.

It would be the largest deficit since the Second World War.

Chancellor Rishi Sunak said: “Today’s figures confirm that the coronavirus is having a serious impact on our public finances.

“The best way to restore our public finances to a more sustainable basis is to reopen our economy safely so that people can return to work.

“We have defined our plan to do this in a gradual and safe way, including the reopening of main streets across the country this week, as we begin our economic recovery. ”

Income from taxes, national insurance and VAT all plunged in May amid the coronavirus shutdown as spending on support measures soared.

It is the first time that the debt has exceeded the size of the economy since 1963, but it is not as high as the post-war 258% peak in 1946-47.

The National Statistics Office previously stated that borrowing in April was the highest since the surveys began in 1993, but later revised the figure to £ 48.5 billion from £ 62 billion.

The UK’s debt stands at £ 1.95 trillion according to the ONS, which represents 100.9% of GDP.

ONS estimates place GDP at 1.93 trillion pounds.

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