According to the Office for Budget Responsibility (OBR), British public debt and budget deficit will widen over the coming 50 years.
Experts at the OBR published a report including several forecasts for the British economic development by 2065. The report reads that the anticipated population size and structure are determined by forecasts of life expectancy, fertility, and net migration. A tendency for a low fertility and long life expectancy provoked a phenomenon of “aging population”. In a long-term prospect, aging population will have the most significant impact on the UK financial situation.
The OBR final forecast is based on the gap between the government’s revenues and its spending. The UK economy would move from a surplus of 2.1% of GDP in 2019-20 to a deficit of 1.9% of GDP by 2064-65.
It is expected that the country will face a shortfall of £76 billion.
The main forecast suggests that the UK will undergo a significant deterioration in its financial sector.
