UK Faces Intensifying Economic Risks and Fiscal Challenges

Reported 3 days ago

The UK's economy, supported by a strong institutional framework and capital markets, is facing significant challenges due to high public debt, rising borrowing costs, and trade tensions caused by US tariffs. Although recent budget measures have restored some fiscal headroom, risks to government forecasts persist, requiring potential policy adjustments in the upcoming Autumn Budget. Additionally, increased military spending could exacerbate public-sector deficits, while mounting public debt is projected to reach 114.2% of GDP by 2029.

Source: YAHOO

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