Debt

Is Debt something to worry about; the two graphs below would suggest there is some initial cause for concern:

 The graph below however is much more revealing and highlights that although UK is not yet at a critical state it has already used many of its levers, if there is not some return to sustained growth levels the future looks very bleak.

The red countries are the ones with the potential for public debt  to exceed 90% of GDP in a few years time, which would slow GDP by 1% or more. I was surprised that Spain was not as weak as I suspected but this us a dynamic chart and the underlying indicators look very bleak for Spain with no sign of growth for a minimum of 2-3 years. From a Euro point of view this looks bleak.

Related resources

• PIMCO