Free Trial

MNI BRIEF: UK Budget Shows Debt-to-GDP Edging Up

(MNI) London
(MNI) London

UK Chancellor of the Exchequer Jeremy Hunt told parliament he would meet his own fiscal rule of having debt falling in the fifth year of the forecast compared to the fourth and public sector borrowing falling below 3% of GDP, although debt-to-GDP will be higher than at present.

Hunt saidt the Office for Budget Responsibility's forecasts were for underlying debt, which excludes the Bank of England, to rise from 91.7% in 2024-25 to 92.8% in 2024-26 and then on up to 93.2% in the two subsequent fiscal year before falling to 92.9% in 2028-29, almost identical to the 92.8% end-point forecast in November, just meeting his fiscal goal. Debt including the BOE was predicted to be 94.3% five years ahead.

The OBR nudged up its 2024 growth forecast to 0.8% from 0.7% and to 1.9% next year from 1.4% but – 0.5% higher than their autumn forecast, with growth coming in at 2% then 1.8% and 1.7% in the final year of the forecast in 2028.

MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
True
MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
True

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.