UK Net Debt Passes 100% of GDP First Time Since 1961

Britain’s public sector net debt surpassed 100 per cent of Gross Domestic Product (GDP) in May as borrowing came in higher than expected, Reuters quoted the Office for National Statistics, (ONS) to have revealed.

Public sector net debt, excluding that of state-controlled banks, hit 2.567 trillion pounds ($3.28 trillion), equivalent to 100.1 per cent of GDP.

That represented the first time that debt stood above 100 per cent of GDP since 1961, although it was temporarily recorded as passing that threshold during the COVID-19 pandemic before being revised lower.

The ONS said government borrowing in May, stood at 20.045 billion pounds.

A Reuters poll of economists had pointed to public sector net borrowing, excluding state-owned banks, of 19.5 billion pounds.