Great Britain’s Public Debt is Approaches 100% of GDP
According to an analysis conducted by rating agency Standard & Poor’s, he public debt of the United Kingdom is approaching 100% of GDP. This situation might lead the agency to downgrade its investment rating of Great Britain. The loss of investment rating of “triple A”; would be a disaster for the Labor government led by Gordon Brown.
According to Reuters, the UK will need to sell during the next months state bonds worth over 344 billion dollars. In these conditions, according to official report British Alistair Darling, the budget deficit will reach 12.4% of GDP and the UK will have the biggest budget deficit in the G8.
After rating agency Standard & Poor’s has issued negative forecasts about the evolution of investment rating of Great Britain, the index of the London Stock Exchange fell by 2.3%, and the cost of insurance against inability to pay of the UK has increased considerably.
All these events happen in a very difficult period for Gordon Brown, who, according to opinion polls, lose popular support in an accelerated pace. According to survey conducted by BPIX Ltd., if parliamentary elections would be held on 17 May 2009, Conservative Party would have won with a gap of 22% compared to the Labor Party.