cepDefault-Index United Kingdom

The United Kingdom's creditworthiness is declining. This is the result of the latest cepDefault-Index 2017. The main reason for the decline is the population’s high propensity to consume: since 2012, the population of the United Kingdom has consumed more than the total available income. Moreover, the competitiveness of the British economy declined for years.


The cepDefault-Index for the United Kingdom shows that both the British GDP deflator and the unit labor costs rose faster than in the EU as a whole. A high consumption rate and a declining competitiveness have resulted in the net need for loans from abroad reaching more than four percent of GDP since 2013.