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Uk Reliance On Loans And Credit Cards Puts Recovery At Risk, Imf Warns

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http://www.theguardian.com/money/2015/apr/15/imf-economic-recovery-risk-loans-credit-cards

Britain’s reliance on households using loans and credit cards to spur economic growth has put the gradual recovery of the past five years in jeopardy, the International Monetary Fund has warned.

A rise in household debt to one of the highest in the developed world puts the UK on a warning list of countries vulnerable to a credit crunch similar to the one that triggered the 2008 banking crash.

The disturbing message from the IMF comes amid concerns that the world economy has become more vulnerable to financial shocks in the past year.

In its twice-yearly financial stability report, it said high debt levels in Europe and the increasing vulnerability of developing countries to volatile financial markets has worsened the outlook for global stability.

José Viñals, the Washington-based organisation’s financial counsellor, said the advent of a multispeed recovery, with some countries stalled or going backwards while others accelerate, had increased tensions in global financial markets.

“In part, this situation results from the legacy of weakened and incomplete repair of balance sheets. Risks are also rotating away from banks to shadow banks and from advanced economies to emerging markets,” he said.

Well Osborne won't be reading this, as consumer credit expansion is plan A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y, Z.

There are no other plans for UK growth.

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