The U.S. Congressional Budget Office projects that the ratio of the nation's national debt to gross domestic product (GDP) will reach 156% by 2055.
In the report, "Long-Term Budget Outlook: 2025 to 2055," the Congressional Budget Office states that the debt-to-GDP ratio is expected to increase each year from 2025 to 2055.
The ratio is projected to rise to 107% by 2029, surpassing the historic peak seen immediately after World War II, and continue to rise to 156% by 2055. After that, it will continue to increase, the Anatolian News Agency reported.
"Rising debt will slow economic growth, increase interest payments to foreign holders of U.S. debt, and pose significant risks to fiscal and economic prospects; it may also make lawmakers feel constrained in their policy choices," the report said.
The overall federal budget deficit is expected to average 6.3 percent of GDP over the next 30 years. That's more than 1.5 times the average of the past 50 years.
By 2055, the deficit is projected to reach 7.3% of GDP, which would still be a large deficit by historical standards.
Federal spending is expected to grow over the next 30 years. In 2055, they will reach 26.6% of GDP. This level of spending has only been exceeded during World War II and the Covid-19 pandemic.
"This growth is driven by rising interest costs, spending on major health care programs, especially Medicare, and Social Security spending, especially over the next decade," the report states.
It said revenues will also continue to increase overall, and will reach 19.3 percent of GDP in 2055.
Real GDP growth, which has averaged 2.5% over the past 30 years, is expected to slow to an average of 1.6% a year from 2025 to 2055.
In 2025, U.S. GDP is projected to grow by 2.1%, while by 2055 the growth rate is projected to decline to 1.4%. | BGNES
