UK household debt: still amongst the highest in the world

In 2017 credit growth is forecast at 16.6 per cent, in 2002, the previous peak, growth was 14.4 per cent. (source: National Accounts and OBR supplementary economic tables, Table 1.11 )

Now these figures are all based on OBR forecasts, and some see in the scale of these increases in indebtedness a message about the implausibility of the present course for the economy.

But any such growth comes on top of a household debt position that is now still very high relative to history, even in spite of some deleveraging. The chart below shows a longer-run time series based on ONS data, including some historic figures that extend beyond 1987, with the latest OBR forecast added to the end. These are given as a share of GDP rather than household income, to enable comparability with other countries.

UK household debt as a share of GDP, per cent

via UK household debt: still amongst the highest in the world.

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