The 3 Graces



UK Total Debt ChartIt is difficult to find one single figure for the UK's total debt. Late last year, Haver Analytics and Morgan Stanley published a chart showing Britain's total debts at around 950% of GDP. This figure includes household, public, corporate and financial debt. Here it is:John Stepek (editor of MoneyWeek) and senior writer Phil Oakley both thought the 950% figure seemed high, So set about compiling their own figures.Using data from the Office for National Statistics (ONS), Credit Bulletins from September 2012, Bankstats Data, Treasury Bulletins from 2012, and research from the McKinsey Global Institute they found that UK debt to GDP ratio is over 500%. This figure is broken down as follows:DEBTGDP(%)?(Bn)SOURCEUK Household Debt (mortgages plus unsecured debt)91.61,415Credit Action bulletin Nov 2012Non-financial Corporation Debt109*1,683McKinsey Global Institute: “Debt and Deleveraging: Uneven progress on the path to growth” (Jan 2012)Financial Institution Debt238.93,688Bankstats September 2012Government Debt (Excl. Financial Interventions)69.21,068Office for National Statistics?TOTAL – 508.7%??* From a McKinsey report which calculated the data as of Q2 2011. This estimate of the current value is used as it is not believed a great deal of deleveraging has occurred in the non-financial corporation sector since then.As you can see, the total comes to just over 500% debt to GDP. This uses the latest UK GDP figure (released 27.11.12). This stated UK GDP for the year up to and including the Q3 2012 was ?1,544Bn.Then we also added in the cost of the financial sector interventions, unfunded public sector pensions and PFI, as you can see below.DEBTGDP(%)?(Bn)SOURCEUK Household Debt (mortgages + unsecured debt)91.61,415Credit Action bulletin Nov 2012Non-financial Corporation Debt1091,683McKinsey Global Institute: “Debt and Deleveraging: Uneven Progress on the Path to Growth” (Jan 2012)Financial?Institution Debt238.93,688Bankstats September 2012Government debt (Excluding Financial Interventions)69.21,068Office for National StatisticsFinancial sector interventions71.11,098Office for National StatisticsUnfunded public sector pensions (incl. Royal Mail)306.34,729Office for National Statistics report April 2012PFI15.7242Treasury 2012?TOTAL DEBT = 901.8%??This figure doesn't include future healthcare costs.The Welfare State.?Facts have been drawn from a variety of sources, including the BBC and World Bank Data. ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download