BRITAIN is almost half a trillion pounds poorer than originally thought according to new figures from the Office for National Statistics (ONS).
The new data shows the UK has seen its stock of wealth collapse from a surplus of £469 billion to a net deficit of £22bn – around a quarter of gross domestic product (GDP).
And we no longer have a reserve of foreign assets, depriving the country of its safety margin as Brexit talks reach a critical stage.
It is thought that crashing out of the EU with no deal could see GDP shrink by almost eight per cent – making it increasingly difficult for the government to defend against a run on the pound.
Gemma Godfrey from investment website Moola said: “We thought they were in £469bn of surplus, but actually we have a £22bn deficit.
“That equates to a quarter of the value of the UK market in total. The reason behind this is that foreign direct investment in companies has fallen and our reserve of foreign assets is much smaller than we thought as well.”
She added: “The reason why this has been offset is two things. First of all, foreign investment has been slightly supported by existing commitments, so it hasn't really fallen down until recently.
“And secondly, people have been buying a lot of sterling because they thought the pound was going to rise. But again, that's quite fickle.
“The reason this is important is that it removes our safety net and also puts us in a weaker position when we're going into Brexit talks.”
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