Chinese 100, 50, 20, 10 and 5 yuan bills and Russian 1,000 and 100 ruble bills - Sputnik International, 1920
Get breaking stories and analysis on the global economy from Sputnik.

US Debt Set to Increase to Record 116% of GDP by End of 2034

© AFP 2023 / OZAN KOSEA picture taken in Istanbul on May 23, 2018 shows US dollars banknotes
A picture taken in Istanbul on May 23, 2018 shows US dollars banknotes - Sputnik International, 1920, 07.02.2024
WASHINGTON (Sputnik) - The US national debt is estimated to increase to a record 116% of the gross domestic product (GDP) by the end of 2034 and will continue to grow afterward, according to a new Budget and Economic Outlook report published by the Congressional Budget Office (CBO) on Wednesday.
"Debt held by the public increases from 99 percent of GDP at the end of 2024 to 116 percent of GDP - the highest level ever recorded - by the end of 2034. After 2034, debt would continue to grow if current laws generally remained unchanged," the report said.
Commenting on the report, Committee for a Responsible Federal Budget President Maya MacGuineas said in a statement that both the Social Security retirement and highway trust funds will become insolvent and will require painful across-the-board cuts within the next decade.
MacGuineas pointed out that interest on the national debt has already topped US federal spending on children or Medicaid and is estimated to exceed spending on national defense in 2025 reaching $1 trillion by 2026.
In addition, MacGuineas called the US fiscal situation "precarious" and called on Congress to "wake up."
As of February 5, the US total public debt stood at an all-time high of $34.154 trillion, according to the data published by the Department of the Treasury.
A homeless man sits on a suitcase on the side of a street lined with tents housing the homeless in Downtown Los Angeles on November 22, 2023. - Sputnik International, 1920, 27.12.2023
US, Europe Likely On Track to Become 'Failed Economies'
Moreover, the US deficit is expected to grow from $1.6 trillion in 2024 to $2.6 trillion in 2034, according to the report.

“The deficit totals $1.6 trillion in fiscal year 2024, grows to $1.8 trillion in 2025, and then returns to $1.6 trillion by 2027. Thereafter, deficits steadily mount, reaching $2.6 trillion in 2034," the report read.

In his statement on the CBO economic projections, House Speaker Mike Johnson called the figures of the national debt and deficit “unprecedented and dangerous” and noted that contrary to President Joe Biden’s claims the debt problem lies with spending, not revenue.
To participate in the discussion
log in or register
Заголовок открываемого материала