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U.K. government debt hits level not seen in 57 years

19 June 2020 13:12 (UTC +04:00)

U.K. government debt rose above 100% of gross domestic product in May for the first time since 1963, reflecting a precipitous drop in economic output and a surge in spending to counter the fallout from the coronavirus pandemic, APA reports citing Bloomberg.

Borrowing increased by more than 100 billion pounds ($124 billion) in the two months to May, as tax revenue plunged and the government deployed a massive support package to save jobs and keep businesses afloat during the lockdown.

The recession ripping through the economy will strain Britain’s public finances for several years to come. But the figures, released on Friday, will add urgency to government efforts to accelerate the recovery by lifting the remaining restrictions as the number of infections drop.