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Experts predict UK and US debt crisis


August, 22 2023
watermark Economic news

Analysts note that despite the fact that the probability of a global debt crisis is currently low, the UK has already found itself in the risk zone, and the US may follow its example in the coming years.


At the moment, the risks of a debt crisis are minimal, since the main debt of many countries is «long-term», which mitigates the impact of rising rates. The biggest problems today are observed in the UK: about 40% of the country's public debt is associated with variable rates, like most mortgages. The crisis in the country began to manifest itself last fall, experts say.


The United States may also face risks if debt obligations are not offset by relatively high inflation over the next few years. At the end of last year, the US national debt reached a historic high of $31.42 trillion, exceeding the debts of the next thirteen major borrowers of the world by $ 23 billion. 


The UK had a debt of $3.03 trillion at the end of last year, ranking fourth among the largest debtors. At the same time, the UK's external debt amounted to 287% of GDP at the end of 2022, and the US – 96%.


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