London, Yiannis Haniotakis

Recent duties imposed by Donald Trump have caused a global shock at the moment when British investors They warn that the country is in danger of sinking into a debt crisis similar to that of Greece a decade ago due to its weak financial situation, Telegraph writes.

The huge British debt of 2.7 trillion pounds, which exceeds the size of the economy, makes the country particularly vulnerable. Neil Robson, head of global shares at the Investment Company Columbia Threadneedle, said the current situation in the country is reminiscent of Greece’s course towards the economic collapse at the crisis of the eurozone.

“When you look at the high debt issue, you can manage it as long as your nominal growth of your economy exceeds the cost of interest,” he said. “However, if GDP growth falls permanently below the cost of debt service, then you are trapped in a self -propelled negative spiral, which can evolve rapidly. This is exactly what we noticed in Greece during the great economic crisis. “

‘Double hit’ for Britain

Bruno Snerell, a partner of Erlen Capital Management, warned that bond markets could turn against the United Kingdom if investors lose their confidence in Finance Minister Rachel Ribs. “Mr Trump’s lightning duties are in danger of provoking a global stagnation shock – and for the United Kingdom, this is a recipe for debt crisis“, He told the Telegraph.

Higher inflation and hectic investment base could be combined, pushing UK borrowing costs to higher levels at the worst possible time. “These are not only the effects of trade war, but the kind of external shock that can crush already fragile debt markets“, He added.