Public Finances (May)

The double whammy of the precipitous fall in economic activity and the government’s measures to combat the crisis has already pushed the debt to GDP ratio above 100% for the first time in over 50 years. While the further easing of the lockdown on 15^th June probably meant the government did not have to borrow quite as much this month as in May, it’s clear the government will still have to borrow a few hundred billion pounds this year.