Britain’s public debt held by foreign investors doubles
According to the independent budget watchdog, the amount of British government debt held by foreign investors has doubled in the past two decades and is on track to become the highest of any advanced economy.
According to the Office for Budget Responsibility, more than a quarter of the UK’s total debt of £2.3 trillion is in foreign hands.
Factoring in costs: more than a quarter of the UK’s total debt of £2.3 trillion is in foreign hands, 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 loans, experts warned.
Only France of the major G7 countries has a larger amount of debt held by foreign investors.
The rest of Britain’s debt is held by domestic pension funds, insurers and the Bank of England under the controversial bond buying program dubbed ‘quantitative easing’.
“In theory, it’s good news that foreign investors are still willing to buy,” said Doug McWilliams of the Center for Economic and Business Research. However, he adds that “in the longer term, it makes the economy more vulnerable – if foreign investors don’t like what they see.”