The IMF have released the results of an analysis of the wealth (HERE) of 31 countries and it shows we have the 30th weakest public finances, only Portugal ranking lower. Amazingly, Gambia and Uganda have stronger public finances than we do. The IMF calculated the net worth of these countries, based on the assets the governments have at hand versus their long-term liabilities. Assets include the likes of land, utilities and commodity resources, with liabilities ranging from debt issuance to public sector pensions.
Because we have sold off a lot of former government assets like the railways, mines, power stations and so on under Margaret Thatcher, and we now have a lot of debt after the financial crisis our balance sheet (assets less liabilities) doesn't look too good.
The IMF warned that the UK is worryingly exposed to inflationary forces, with a significant portion of its debt index-linked, a particular concern if the country crashes out of the EU with no deal and subsequently faces World Trade Organisation tariffs. As we embark on our glorious future as global trader extraordinaire we have a huge trade deficit, a growing public debt and now the weakest but one public finances out of 31 countries. What can possibly go wrong?
If we could pay our debts in hubris, that of Liam Fox and David Davis would settle everything and leave plenty for the great festival of Brexit planned for 2021 (or is it 2022? or 2023?).
If we could pay our debts in hubris, that of Liam Fox and David Davis would settle everything and leave plenty for the great festival of Brexit planned for 2021 (or is it 2022? or 2023?).
The IMF's figures look like this:
