UK Public Sector Debt Hits 100% of Economic Output for First Time Since 1960s
The UK has hit a significant economic milestone, with public sector debt reaching 100% of its annual economic output for the first time since the 1960s. This alarming statistic, released by the Office for National Statistics, raises concerns about public finance sustainability as Chancellor Rachel Reeves prepares to address a £22 billion financial gap. With rising government borrowing and increasing expenditures, all eyes are on the upcoming budget announcement on 30 October, which will outline the government’s strategy for economic recovery.
Moody’s projects significant increase in Nigeria’s interest spending by 2024
Moody’s Ratings projects a significant increase in Nigeria’s interest spending, estimating a rise of 1% of GDP in 2024. Tighter monetary conditions and higher interest rates are expected to drive interest spending to consume 36% of government revenue. Moody’s warns of risks to fiscal consolidation due to higher oil subsidies and inflation shock, leading to ever-increasing interest expenses.
The Missing Topic in Federal Election Campaigns: The National Debt
As federal election campaigns focus on key issues like abortion and immigration, the national debt remains a crucial topic that is often overlooked. With the US facing a staggering $34.6 trillion in public debt, concerns about long-term financial stability are mounting. Economists warn of the impact on Americans’ financial well-being and economic growth. To address the debt problem, politicians must engage in honest discussions with the public and tackle challenging issues like entitlement reform.
Debt Advisers Warn of Surge in Unregulated ‘Buy Now, Pay Later’ Credit
Debt advisers are warning about a surge in unregulated ‘buy now, pay later’ credit as UK consumers increasingly turn to these deals to purchase everyday essentials. The amount spent using such deals has risen to £1.7bn a month, prompting calls for government intervention to regulate the sector. The ‘buy now, pay later’ market has expanded more than fourfold since 2020 and is projected to reach a record total of £30bn this year. Campaign groups are urgently seeking measures to oversee and control the sector.
Challenges for Bond Investors as Incora Emerges from Bankruptcy
Bond investors are facing challenges as Incora, an aerospace parts supplier, attempts to emerge from bankruptcy, shedding light on the struggles of high-yield debt investors in the current credit cycle. JPMorgan Chase & Co. and affiliates of BlackRock Inc. are…
2024: A Pivotal Year for the Buy Now, Pay Later Industry
2024 is expected to be a pivotal year for the buy now, pay later (BNPL) industry, with projections for substantial growth and expansion. However, amidst the optimism, there are concerns and challenges that industry players will need to address to…