GDP exceeded by debt levels, study shows

26/08/2008

Personal debt levels in Britain continue to exceed the nation's economic output, figures from Grant Thornton show.

According to the accountants, the amount of money yet to be repaid on mortgages, loans and credit cards hit £1.44 trillion over the 12 months to June 2008.

By contrast, GDP - or, the total value of all goods and services produced by the nation - stood at just £1.41 trillion.

Talking to the Independent newspaper, Stephen Gifford at Grant Thornton explained: "Despite the global downturn flattening the growth of personal debt and UK GDP over the past few quarters, debt levels continue to grow at a faster rate than the income the UK generates.

"Although there is no cause for panic as personal debt is well covered by the UK housing stock, the figures clearly illustrate the continuing problem of growing personal debt levels in the UK."

He added: "If the property market and economy continue to weaken, the current levels of personal debt will become unsustainable and there will be a marked increase in personal insolvencies."

Tags; Current UK Economy,

Regional Debt Advice; Debt Advice Thornton,

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