The UK was classified by the IMF as an advanced economy that runs the risk of permitting borrowing to increase significantly above pre-COVID levels, the organization said as Rachel Reeves traveled to Washington to attend her first IMF annual conference as chancellor.
The UK’s net debt is expected to rise from 91.6% of GDP this year to 96.4% by 2029, according to the IMF’s annual fiscal monitor study, which evaluates tax and spending forecasts across global countries.
“High, rising, and risky” is how IMF head of fiscal affairs Vitor Gaspar described the UK’s national debt.
but stated to News that public investment was a top priority due to a mix of poor growth and relatively high interest rates.
I would express my concerns about the UK in the following way if I had to. Interest rates in the UK are somewhat close to those in the US, although growth rates are not nearly as high as those in the US.
This brings us to a topic that has been discussed extensively in the UK. Public investment as a percentage of GDP has been declining, and it is desperately needed given the difficulties posed by the energy transition, new technologies, technological innovation, and many other issues.
