Government debt as a share of GDP has nearly tripled over two decades, borrowing has remained around 5 per cent of GDP for the past four years, and borrowing costs are among the highest of advanced economies. Against this challenging backdrop this interim forecast update is little changed from November. GDP growth averages 1½ per cent from next year and borrowing falls to around 1½ per cent of GDP in 2030-31, which would stabilise debt around 95 per cent of GDP. Significant risks, including from conflict in the Middle East, mean outcomes both substantially above and below this forecast are possible.
"It is the duty of the Office to examine and report on the sustainability of the public finances"