LONDON, July 8 (Xinhua) -- The United Kingdom (UK) is facing a bleak outlook for public finances, the Office for Budget Responsibility (OBR) said Tuesday.
The UK government's deficit stood at 5.7 percent of GDP at the end of 2024, approximately 4 percentage points higher than the average for advanced economies, according to a fiscal risks and sustainability report released by the office.
This figure ranked as the third highest among 28 advanced European economies and the fifth highest among 36 advanced economies.
Meanwhile, the government's debt reached 94 percent of GDP, the fourth highest among advanced European economies and the sixth highest among advanced economies.
OBR said successive governments have failed to take the tough decisions needed to start bringing the deficit under control.
"Efforts to put the UK's public finances on a more sustainable footing have met with only limited and temporary success in recent years," said the report.
The OBR warned of a "substantial erosion of the UK's capacity to respond to future shocks and growing pressures on public finances," noting that underlying public debt is now at its highest level since the early 1960s and is projected to increase further in the medium term.
The report added that the debt burden will become increasingly difficult to manage as economic growth slows and interest rates rise. Demographic pressures from an aging population, along with rising healthcare and other age-related costs, are also expected to push borrowing even higher in the long run.
