In the statement made by the international credit rating agency Fitch Ratings, it was stated that compared to 2020, the total interest on the debts of developed economies increased by 47 percent and developing economies by 40 percent.
In the statement, “Trend data shows that the period of low inflation is over. At least for developed economies, the period of borrowing at significantly low interest rates is over.” it was said.
UK’s highest debt interest payment
It was stated in the statement that the rising inflation in the UK also caused an increase in borrowing costs, and it was announced that the UK had the highest debt interest payment among developed economies.
In the statement, it was informed that as of May 2023, the UK’s 12-month debt interest payment reached 117 billion pounds, which is approximately 2 times higher than the 12-month debt interest payment in September 2021.
In the statement, it was stated that the total debt interest payment of the UK is expected to be around 110 billion pounds in the whole of 2023, and it was noted that this debt interest volume corresponds to 10.4 percent of the British government’s total annual income, which represents the highest rate among developed economies.
The UK Office of Budget Responsibility (OBR) announced on 13 July that public debt could reach 300 percent of GDP in 50 years, with increased indebtedness due to high interest rates.
Net government debt in Britain reached 100.1 percent of GDP in May and exceeded 100 percent of GDP for the first time since March 1961.
