Industrial production and national debt 1980 - 2018

Great Britain's industrial production in a long-term decline since 2000

National flag of Great Britain

Update February 14th, 2019 - The upward movement of industrial production stopped in 2000. Since then production mainly dwindled and reached 2018 with 103.0 index points a level almost 10% below of that in year 2000 (113.5).

 

So the three structural changes in the course of the industrial production since the year 2000 ("The structural changes in the course of the industrial production") have deepened forcing Great Britain's industrial production for twelve years until 2012 into a long-term decline.

Industrial production of Great Britain from 1980 to 2018.

Declining production, soaring national debt

As in Japan a stagnating or declining industrial production is combined with soaring national debt.

National debt of Great Britain in % of GDP from 1990 to 2016.

In 2006 the galloping national debt started along the beginning permanent crisis of industrial production. Within ten years national debt soared by more than the two and a half times from 44% to 117% of the Gross National Product.

Galloping private debt

The private sector includes enterprises excluding banks, households and non-profit institutions. This corporate and private debt amounted to 170% of Gross Domestic Product at the beginning of 2018.


Shortly before and during the global economic crisis, this debt ration reached 195% of GDP.

Private Verschuldung in Gro├čbritannien von 1980 bis 2018
Source: Federal Reserve Bank of St. Louis, Sept 24, 2018

Credit or debt means buying goods and services today and paying later from the value added, i.e. income and profit. However, industrial production as an essential factor of value creation is shrinking. This means that there is a trend towards declining value added and exploding debt. Sooner or later, the prospects for this situation will lead to an even deeper global economic crisis.

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