The amount of UK national debt held by overseas investors has doubled in the past two decades and is on track to become the highest of any advanced economy, according to the independent budget watchdog.
More than a quarter of the UK’s total £2.3 trillion debt pile is foreign-owned, according to the Office for Budget Responsibility.
Counting the cost: More than a quarter of the UK’s total £2.3 trillion debt pile is foreign-owned, according to the Office for Budget Responsibility
It means the Government will rely on what former Bank of England governor Mark Carney called ‘the kindness of strangers’ to fund public borrowing, experts warned.
Only France of the major G7 countries has a higher amount of debt owned by foreign investors.
The rest of the UK’s debt is held by domestic pension funds, insurers and the Bank of England under its controversial bond buying programme called ‘quantitative easing’.
‘In theory it’s good news that overseas investors are still prepared to buy,’ said Doug McWilliams of the Centre for Economic and Business Research adding, however, that ‘in the longer term it makes the economy more vulnerable – if outside investors don’t like what they see.’
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