The Strategist

Congress predicts increase in US public debt to a record level

01/29/2020 - 09:08

In the past decade, the US budget deficit will exceed $ 1 trillion, and public debt will rise to the highest level since the Second World War, Congress analysts predict.
The US Congressional Budget Office (CBO) predicts an increase in US government debt from the current 81 percent of the country's GDP to 98 percent by 2030. This will be the highest figure in United States history since World War II. According to CBO estimates, the US public debt will continue to grow after that, reaching a record level for all time - 180 percent of GDP by 2049. This information is presented in the economic forecast published on Tuesday, January 28.

In addition, the analysts expect the US budget deficit to exceed a trillion dollars annually over the next decade, starting as early as 2020. On average, budget spending will be more than $ 1.3 trillion in revenue, CBO predicts. This will lead to "rising inflation and bank interest after a decade in which both rates were on average low," the report said.

One of the reasons for this forecast is the economic policy of US President Donald Trump, in which budget expenditures increased and corporate taxes were noticeably reduced.