SAVE MONEY ON TRAVEL DEALS

Government figures released Friday showed British families owed a record 173 percent of their incomes in debt, the highest figure ever recorded for an industrialized economy, and that is leading some observers to warn that the country is in for a much more drastic downturn than is now anticipated, The Daily Telegraph reported Saturday.

The 173 percent income-to-debt figure represents an even higher level than was sustained by Japan in 1990 when the country entered a decade-long period of deflation, government economists said.

The news came on top of other alarming numbers as the week ended, including a downsizing of the forecast growth of Britain's gross domestic product, as well as a survey indicating consumer confidence in the economy has sunk to new lows.

Jonathan Loynes of Capital Economics told the Telegraph, "With growth already so weak in the first quarter before the full effects of the credit crunch and housing downturn had been felt, the economy looks set to slow significantly further over coming quarters."

 BREAKING STORIES

Britain set for drastic economy moves

Study: U.S. Web users tops in online use

Lloyds TSB shareholders approve merger

Britain prodded reluctant banks on rates

British banks to lower interest rates

British home price down 15 percent on year

Britain guarantees Icesave accounts

Lloyds to pass rate cut on to customers

Two key banks cut lending rates in Europe

PMI in Britain gains slightly in month

Union calls for merger details on jobs

Iceland slams Britain's use of terror law

Report: Brown to back Heathrow expansion

Banks in Britain fail to lower rates

BP profits jumped 148 percent in quarter

Banks seize homes over credit card debt

Automakers to cut production in Britain

British Prudential keeping its eye on AIG

Thousands fall into negative equity

Prices at pump catch prime minister's ire