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Could new-style bonds help fix our debt problem?

GDP-linked bonds are a neat idea but far messier in practice
September 20, 2023
  • Experience shows that investors are wary of GDP-linked bonds
  • And data difficulties don’t help

 

How bad is the UK’s debt problem?

The UK’s debt-to-GDP ratio has breached 100 per cent, and the Office for Budget Responsibility (OBR) warns that it could rise even higher: according to its baseline forecasts, debt will reach 300 per cent of gross domestic product (GDP) by the 2070s.

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