A world drowning in debt

The UK budget deficit is on course to hit £350bn, and America’s federal deficit has hit a record $3.1trn. But the debt surge is a truly global phenomenon.

United States Capitol © Getty Images/iStockphoto
America’s federal annual overspend reached a record $3.1trn last year
(Image credit: © Getty Images/iStockphoto)

Covid-19 is being allowed to “let rip” in the public finances, says Jeremy Warner in The Daily Telegraph. The Institute for Fiscal Studies says that the UK budget deficit is on course to hit £350bn in the current financial year, equivalent to 17% of GDP. Total UK government debt has already surpassed £2trn for the first time.

America’s federal deficit hit a record $3.1trn for the recently concluded 2020 fiscal year, according to data from the Congressional Budget Office, with spending between April and September almost double the figure for the same period in 2019.

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Markets editor

Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019. 

Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere. 

He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful. 

Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.