The US Congressional Budget Office said that the national debt will be almost twice the size of the US economy in 30 years.
This figure assumes that there are no new major spending projects from Congress at that time, which means that debt levels could rise more quickly.
“By the end of 2023, the federal debt held by the public is equal to 98 percent of GDP and then the debt relative to GDP will rise: it exceeds its historical high in 2029, when it will reach 107 percent of GDP,” the report said.
The Congressional Budget Office has indicated that the deficit is about to rise.
“In the forecasts of the Congressional Budget Office, the deficit is equivalent to 5.8% of GDP in 2023, falling to 5.0 percent by 2027, and then growing every year, reaching 10.0% of GDP in 2053,” the report said.
“There is still a tremendous amount of work required to put our financial situation on a sound footing,”said Maya McGuinness, chairwoman of the committee for a Responsible Federal Budget, commenting on the forecast.
Policymakers need to prioritize social security and Medicare and start standing with the American people about the serious challenges these programs face.
The Congressional Budget Office report warned that rising debt levels would have serious economic consequences.
