Wednesday, 31 March 2010

Debt Rankings, UK is Better Than France, Germany, & Italy

Listening to the other parties, you would think we were one of the most indebted countries in the world. So here is a list that may surprise you.

Levels of Public Debt as a % of GDP from 2009
1 Zimbabwe 304.30 %
2 Japan 192.10
3 Saint Kitts and Nevis 185.00
4 Lebanon 160.10
5 Jamaica 131.70
6 Singapore 117.60
7 Italy 115.20
8 Greece 108.10
9 Sudan 104.50
10 Iceland 100.60
11 Belgium 99.00
12 Nicaragua 87.00
13 Israel 83.90
14 Sri Lanka 82.90
15 Egypt 79.80
16 France 79.70
17 Germany 77.20
18 Portugal 75.20
19 Hungary 72.40
20 Canada 72.30
21 Jordan 69.90
22 United Kingdom 68.50

'Japan’s Public sector debt is very high. However, Japan has a high savings rate which makes it easier for the government to finance the debt. 90% of Japanese debt is owned by Japanese individuals. US has a low savings ratio and 25% of US debt is owned by foreigners. Nevertheless the National Debt of Japan is a real burden for the economy.'

Though our debt is very high, quite a big chunck of it was used give to banks, who presumably will give it back, eventually. Another chunk was used to support the economy, keeping unemployment low just before an election. Did the other potential chancellors make this point on the recent debate?

Yet another reason that many people are coming to see the big three parties as too similar.


dazmando said...

Yep I agree I had a look at this myself in December

Adrian Windisch said...

Cheers Dazmando. One thing that I would like explained, much of our debt is borrowed and given to the banks. But we borrowed the money from banks.

Isn't that a bit circular? Have we just borrowed our own money?

Luke3065 said...

it's bescause people keep borrowing money to get out of debt but that will never work!