Economy

United States government debt to pass 100 per cent of GDP in 2021

Driven by the massive fiscal response to the COVID-19 pandemic, USA federal debt is projected to exceed the size of the economy for the fiscal year 2021, the highest level since World War II, the Congressional Budget Office (CBO) said Wednesday.

The Congressional Budget Office published its latest report on federal deficits and debt on Wednesday.

"This report shows that our unsustainable fiscal challenges have rapidly accelerated, as our national debt will now exceed the size of our entire economy next year", said Peter G Peterson Foundation Chief Executive Michael Peterson.

The nonpartisan CBO said its updated forecasts project that by 2030, the debt would equal 109 per cent of GDP.

"Trust fund deficits are larger than previously projected in part because of economic disruption caused by the pandemic", the agency said. The updated budget estimate, issued Wednesday and which incorporates legislation enacted through August 4, also showed the US deficit will total $1.8 trillion in fiscal 2021.

The $2.2 trillion increase over March estimates was largely attributed to legislation passed in response to the pandemic. In CBO's projection, annual deficits relative to the size of the economy generally continue to decline through 2027 before increasing again in the last few years of the projection period, reaching 5.3 percent of GDP in 2030.

More news: Joe Biden's team brings official campaign signs to 'Animal Crossing'

So far this year, more than $3tn in emergency coronavirus pandemic aid has been enacted into law.

These huge federal outlays have caused a surge in this year's already large deficit and federal debt.

Deep disagreements among lawmakers have slowed work on that measure.

Meanwhile, federal outlays are projected to equal 32 percent of GDP in 2020, which is about 50 percent above what they were previous year and the highest percentage since 1945.

The deficit in 2021 is projected to be 8.6 percent of GDP, according to the report.



Like this

loading...
loading...

Latest


03 September 2020
Did Cuomo Threaten Trump? Governor Slams President Over Move to Defund NYC
If Joe Biden gets huge wins in Washington, New York, and OR , it won't help his "Electoral College chances at all", Silver notes . He has criticized local leaders' handling of protests and pushed his message of "law and order" in his bid for reelection.

03 September 2020
The Mandalorian Season 2 Disney Plus release date is now confirmed
This announcement obviously bodes well for a trailer coming our way relatively soon, but we'll just have to wait and see. To relive The Mandalorian season 1 or simply revisit the Star Wars universe in general, hit the link below.

03 September 2020
U.S. media: CDC urging states to prepare for vaccine
The FDA approved an emergency authorization of the use of convalescent blood plasma August 23, a decision Trump described as "truly historic".

03 September 2020
Aston Villa pushing Frédéric Guilbert towards the exit door
He also paid tribute to his boyhood club Forest, thanking the fans and the club for developing him as a player. His time at the Cherries saw him rack up 208 appearances in total, scoring 24 goals and providing 33 assists.

03 September 2020
Meghan Markle and Prince Harry Sign Major Production Deal with Netflix
The royal couple will make their shows for Netflix under the banner of an as yet unnamed production company. The prince worked closely with the filmmakers of the documentary Rising Phoenix , in which he also appears.

03 September 2020
4th-gen Hyundai Tucson teased ahead of global debut
It looks very enveloping and pod-like for the two front occupants thanks to the wraparound design that blends well with the doors. A long-wheelbase variant goes to the U.S., China, and Korea, while the short-wheelbase model goes to Europe and the Middle East.

03 September 2020
Manchester United signs Ajax midfielder Van De Beek for $46 million
Who will he replace? The Dutch midfielder has joined Manchester United, after the Gunners' rivals agreed a £40m deal with Ajax. United announced they had signed Van de Beek from Ajax on a five-year contract, with an option to extend for a further year.

03 September 2020
Canucks beat Vegas 2-1 in Game 5, avoid elimination
And Green had several more sentences about his No. 1 Markstrom than Demko at his morning media availability. So not that fine, but Demko was, especially in the last 40 minutes when he faced 34 shots.

03 September 2020
Top prospect Makur Maker picks Howard over UCLA, Kentucky, Memphis
Maker called out sophomore sensation, Mikey Williams , hoping that his commitment impact Mikey's decision when choosing a school. There have been links between Maker and the G League , but sources have told ESPN he isn't interested in going that route.

03 September 2020
U.S. sanctions International Criminal Court officials
Media captionThe International Criminal Court has come in for strong criticism - most recently from the United States. Richard Dicker, Human Rights Watch worldwide justice director, said it was a "stunning perversion of U.S. sanctions".