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£11 trillion debt wave as governments borrow more than ever before

The US Government is among those borrowing heavily

Andrew Harrer/Bloomberg

Governments need to borrow £11 trillion on financial markets this year, breaking the £10.9 trillion record set in the recession-fighting spending spree at the height of the financial crisis.

Most of this is caused by governments refinancing existing debt mountains as the bonds issued to finance earlier debt-fuelled spending mature.

But more than £2 trillion is new borrowing as nations continue to add to their national debts, according to data on rich-world economies from the Organisation for Economic Co-operation and Development (OECD).  The US budget deficit hit more than 4pc of GDP last year.

Governments can afford the debt burdens now because of easy market conditions and interest rates that…

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