U.S. National Debt Is Expected to Exceed 200% of GDP by 2050
March 4, 2021
The federal debt is expected to reach a record high of 202% of gross domestic product by 2051, according to the Congressional Budget Office. The CBO attributed the increase to rising costs of healthcare and debt servicing.
Some good news from the latest projection is an increase in expected growth in coming years. The CBO expects growth to average 1.8% a year over the next three decades, up from the previous projection of 1.6%. The increased growth projections reflect the smaller-than-expected impact of the pandemic.
It should be noted that the current CBO projections do not take into account the $1.9 trillion stimulus package currently being discussed in Congress. Opponents of the package argue it will add to the growing deficit, while proponents believe it will spur additional economic growth.