UK Debt Larger Than Size of Entire Economy
It Will Require Multiple Years to Repay $214 Billion Debt
The coronavirus pandemic is taking a huge toll on the economic stability of the United Kingdom. The public debt has increased further as UK debt larger than size of entire economy of the country. This situation has not gotten worse to this level since 1963. This time the British government took the debt of more than $68 billion USD in the month of May. The total amount of debt the United Kingdom is indebted has reached $214 billion over the time duration of last year, reaching $2.41 trillion, which is equivalent to 100.9% of Gross Domestic Product.
Economy of United Kingdom amid coronavirus
The ministers of the British Empire have given unprecedented support towards the general population of their nation. These large amounts of debts were taken to help and support millions of households and businesses amid the coronavirus pandemic. Due to these numerous recent transactions of the British government, the amount of UK debt larger than size of entire economy of the nation.
As the debt size of the United Kingdom has increased above the country’s economy, it has joined forces with Japan, United States, and Italy to be able to borrow more amount than the economy of the entire region. This recent debt of $68 billion was roughly about nine times more than the loan taken in the last year. This amount is the highest amount of money borrowed in a month since 1993.
As the amount of UK debt larger than size of entire economy, this confirms the strain of coronavirus on the economic stability of a developed country. This severe impact on the public finances will be restored after the country is safe to reopen back to its normal routine when people are secured from acquiring the novel coronavirus.
The restoration of the normal routine of the country will be done in a safe and gradual way, starting with the reopening of numerous high streets in the country in the upcoming week. This will prove to be a kick start towards the recovery of the country’s economy as UK debt larger than size of entire economy.
Increase in retail sales
According to the data from the Office of National Statistics, the retail sales in the United Kingdom has increased around 12% in the month of May, as the general population of the region has begun buying multiple household items for the first time after the outbreak of coronavirus in the country.
The data suggested that there has been a 42% increase in the retail sales of non-food shops as compared to food and grocery stores. A large part of the general population of the country has bought items from non-food stores and DIY shops. The largest fall in the retail sales record has decreased by 18.1% in the month of February.
As the amount of UK debt larger than size of entire economy, the government is trying to gradually reopen the country to counter this issue. The habits of buying products of the general population of the country have drastically changed amid the coronavirus pandemic. 33.4% of the retail items bought have been through online shopping platform. This is a very drastic change as the average percentage of online shopping in the United Kingdom seen in the last year was 18%.
The gradual reopening of the country proved to be a ray of hope to the general population of the country to prevent the further amount of UK debt larger than size of entire economy. This provides a possibility that the recovery of the United Kingdom will come through as soon as the lockdown across the region is lifted. Even though the country is on its way towards resuming its routine, multiple businesses and shops have suffered dire consequences due to the coronavirus pandemic.