Recently it was revealed by McKinsey, the consultancy, that the UK debt to GDP ratio stood at 507% in the middle of 2011. Robert Peston reminds us that this is up from 487% of GDP in the second quarter of 2008, and, incredibly, from around 300% in 2003 – before the credit boom. Only Japan is more indebted with its debt to GDP ratio at 512%.
Further still, it is the financial sector, mostly in the city, which accounts for 219% of the debt. Household debt experienced a modest decrease, though is still very high. Continue reading