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| Version 1 | Version 2 |
|---|---|
| IMF warns of 'disturbing' UK debt | IMF warns of 'disturbing' UK debt |
| (about 1 hour later) | |
| The level of debt in the UK is "disturbing," the head of the International Monetary Fund has said. | The level of debt in the UK is "disturbing," the head of the International Monetary Fund has said. |
| But Dominique Strauss-Kahn told the BBC that given the severity of the economic downturn, more government borrowing was the lesser of two evils. | But Dominique Strauss-Kahn told the BBC that given the severity of the economic downturn, more government borrowing was the lesser of two evils. |
| He said 2009 would be "a really bad year" and more state spending was necessary to stimulate growth. | He said 2009 would be "a really bad year" and more state spending was necessary to stimulate growth. |
| Public debt has risen to £650bn, 44.2% of UK gross domestic product. Consumer debt is more than £1.4 trillion. | Public debt has risen to £650bn, 44.2% of UK gross domestic product. Consumer debt is more than £1.4 trillion. |
| In last month's pre-Budget report, the chancellor announced plans for a £20bn economic stimulus package, which would bring public debt close to 50% of GDP. | |
| 'Less bad solution' | |
| Mr Strauss-Kahn said governments around the world had no choice but to step in and spend more. | Mr Strauss-Kahn said governments around the world had no choice but to step in and spend more. |
| "I'm specially concerned by the fact that our forecast, already very dark... will be even darker if not enough fiscal stimulus is implemented," he said. | "I'm specially concerned by the fact that our forecast, already very dark... will be even darker if not enough fiscal stimulus is implemented," he said. |
| "The threat is that big today that I think that between two different problems, increasing deficit - which is never good - and fighting against recession - which is even worse - we have to choose the less bad solution." | "The threat is that big today that I think that between two different problems, increasing deficit - which is never good - and fighting against recession - which is even worse - we have to choose the less bad solution." |
| He added that measures announced by the G20 group of leading industrial countries last month may not be sufficient to revive the global economy. | He added that measures announced by the G20 group of leading industrial countries last month may not be sufficient to revive the global economy. |
| It would take a spending stimulus equivalent to about 2% of global GDP - about $1.2 trillion (about £800bn) - to make a real difference, he said. | It would take a spending stimulus equivalent to about 2% of global GDP - about $1.2 trillion (about £800bn) - to make a real difference, he said. |
| "The problem is that all the whole society is going to suffer," he added. | "The problem is that all the whole society is going to suffer," he added. |