The United States is considered to be a leader in terms of debt levels: in 2019, its public debt stood at an impressive $23 trillion. The UK turned out to be in the red as well. The country's national debt soared in May this year. Experts fear that a further increase in its volume may disbalance the already fragile British economy.
The Office for National Statistics said that last month, the public debt had increased to £1.95 trillion ($2.42 billion), representing 100.9% of the UK's GDP. For the first time since 1963, it had exceeded the volume of Britain's economic output, the ONS emphasized. Such an enormous increase in debt levels was triggered by unprecedented measures introduced by the government to support the UK economy. The crisis caused by the coronavirus pandemic forced ministers to resort to a borrowing boost.
Notably, the highest level of the government debt in the country was recorded in 1946-1947 - 258% of GDP. The current situation is not so critical, but debt levels may continue to rise. In May 2020, the amount of cash borrowed by the British government surged to £62.7 billion, the highest figure since 1993. According to experts, the UK government debt has hit the level not seen in the past 57 years. Analysts at the Financial Times believe that government borrowing is likely to top all the records by the end of the current fiscal year.
