The Financial Express quoted Mr Dominique Strauss-Kahn chief of International Monetary Fund as saying that the level of debt in the UK is disturbing but more government borrowing is necessary to stimulate growth.
Mr Strauss-Kahn in an interview to the BBC said that the level of debt in the UK is disturbing, but given the severity of the economic downturn, more government borrowing was the lesser of 2 evils. He warned that 2009 would be a really bad year.
He said that "I"m especially concerned by the fact that our forecast, already very dark will be even darker if not enough fiscal stimulus is implemented."
Mr Strauss-Kahn said that "More state spending was necessary to stimulate growth" and governments around the world had no choice but to step in and spend more. Public debt has risen to GBP 650 billion, 44.2% of UK gross domestic product. Consumer debt is more than GBP 1.4 trillion.
He added that a stimulus equivalent to about 2% of global GDP or about USD 1.2 trillion is required to make a real difference to the crumbling economy. He said that "The problem is that all the whole society is going to suffer."