The national debt will be nearly twice as large as the U.S. economy in 30 years, the U.S. Congressional Budget Office projects.
That figure assumes no new major spending projects from Congress in that time, which is unlikely, meaning that debt levels could actually rise much more quickly. Conversely, Congress could slow that trend by cutting spending.
“By the end of 2023, federal debt held by the public equals 98 percent of GDP,” the report said. “Debt then rises in relation to GDP: It surpasses its historical high in 2029, when it reaches 107 percent of GDP, and climbs to 181 percent of GDP by 2053.”
CBO found that deficits are poised to soar as well.
“In CBO’s projections, the deficit equals 5.8 percent of gross domestic product (GDP) in 2023, declines to 5.0 percent by 2027, and then grows in every year, reaching 10.0 percent of GDP in 2053,” the report said. “Over the past century, that level has been exceeded only during World War II and the coronavirus pandemic.”
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, responded to the CBO projections, saying “there is still a tremendous amount of work needed to put our fiscal situation on sound footing.”
MacGuineas said the fast growth of Medicare, Social Security and interest on the debt are particularly problematic.
