Economist warns over debt crisis in the UK

The UK is facing a huge economic crisis thanks to its bludgeoning debt problems, one expert has warned.

Simon Johnson, a former chief economist at the International Monetary Fund, said Britain is in the same boat as countries such as Greece and Spain when it comes to debt.

Speaking to the BBC, he said the financial markets have taken a "long hard look" as the fiscal accounts of European nations with serious budget deficits and "don't like what they see".

He acknowledged that Greece is an extreme example, but insisted that debt ratings in many other countries have been severely damaged.

"I have to add the UK to this list," he remarked.

"Unless you can persuade the markets that you're really going to bring the budget under control within the foreseeable future and you're going to have some credible actions, you're going to have big trouble."

His comments come after official figures revealed that the UK economy emerged from the recession in the final quarter of 2009, growing by 0.1 per cent.