The Blubber

Per Bloomberg

For the first time in 1961, UK debt exceeded 100% of the UK economy. This comes as its public sector net debt in May was 100% of the total nation's GDP, according to the Office for National Statistics.

The public sector net debt reached 100.1% of GDP, reaching $3.28 trillion. This was as the government borrowed $26.3 billion in May, exceeding economists' initial expectations of $25.6 billion.

This was still a decline from April, with it dropping by $3.9 billion in May, but it was still over double its numbers during the same period in 2022. Divya Sridhar, a PwC economist, gave a statement regarding the situation.

Sridhar: “This will likely drive up spending through increased debt interest payments and inflation-linked benefits and tax credits,”

At the start of the year, it was reported that the UK GDP had a small bump, which helped slightly steer the risk of recession. This was as the UK economy saw an increase of 0.1% in GDP.

In December, it was reported that 1.9 million UK households missed payments or defaulted on at least one mortgage leading to Christmas. This came from a survey by Witch?, involving 2,000 participants, which allowed them to come up with these estimates.

See flow at unusualwhales.com/flow.

Other News:

• UK GDP Bump Helps Slightly Steer Risk of Recession
• 1.9 Million UK Households Missed Payments or Defaulted on at Least One Mortgage Leading to Christmas

Resources:

CNBC