WASHINGTON (Sputnik) – The US authorities’s debt held by the general public is projected to develop to greater than 202 % of annual Gross Domestic Product (GDP) over the subsequent 30 years to 2051, the Congressional Budget Office (CBO) warned in a brand new report.
“By the end of 2021, federal debt held by the public is projected to equal 102 percent of GDP,” the CBO stated within the report on Thursday. “Debt would reach 107 percent of GDP (surpassing its historical high) in 2031 and would almost double to 202 percent of GDP by 2051.”
At an estimated 10.3 % of GDP, the annual federal authorities deficit in 2021 could be the second largest since 1945, exceeded solely by the 14.9 % shortfall recorded in 2020, the CBO stated.
A rising debt burden might improve the chance of a fiscal disaster and better inflation in addition to undermine confidence within the US greenback, making it extra pricey to finance private and non-private exercise in worldwide markets, the report added.