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UK GDP has fallen, but recovery is in sight

UK finances threatened by virus, climate and debt

LONDON (awp / dpa) – The public sector body OBR was warned on Tuesday by a pandemic and climate crisis that the UK public money, $ 10 billion in accounts would be left at the mercy of registered debt.

In a statement, the Office of Budget Responsibility (OBR), which is responsible for budgeting for the government, identifies “three major and catastrophic risk sources” after the biggest economic shock in three hundred years.

The epidemic has had a major impact on the country’s economy, which has been severely affected by the emerging economies, which are expected to return to pre-crisis levels by mid-2022.

At the expense of the recorded public deficit, the government would have spent a total of more than 400 400 billion to mitigate the shock.

OBR warns that the health crisis is leaving its mark and estimates that about 10 billion annual spending over the next three years will not be funded on health, education and transportation.

This funding “hole” can only be filled by over-taxing or diverting planned expenditures in other sectors.

The OBR warns against any delays in the fight against global warming and the need to achieve the goal of carbon neutrality by 2050.

If the country operates early, energy change will increase GDP by 21% over the next 30 years, an increase of $ 469 billion, which the organization estimates is slightly lower than the epidemic in two years.

If there is a delay in “green” operations, the impact of debt could reach 43% of GDP and rise to 289% of GDP by the end of the century, which is 100% of the current time.

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Finally, the OBR is already very concerned about the UK debt, so it is very sensitive to rising interest rates and currently at a very low level.

afp / rp