Repaying public debt while supporting economic growth

UK public debt is now more than 100% of GDP and is forecast to peak at 110% in 2025. The official public debt figure is large, growing and challenging to repay. It gets worse when you include the trillions of pound of off-balance-sheet debt and commitments for unfunded govt pensions. Much of this debt accumulated though govt actions to support the economy and the public during the global financial crisis and the coronavirus pandemic. For the UK population, the most supportive way for the govt to reduce debt as a percentage of GDP is to grow the economy so the the debt represents a smaller slice of a larger pie (the alternatives being austerity with debt repayment or inflation to reduce the value of the debt – both carry negative consequences). The challenge for the UK give is to grow the economy while being shackled with excessive debt




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