By Mucahithan Avcioglu
ISTANBUL (AA) - The Congressional Budget Office (CBO) estimated Wednesday that the US’ public debt-to-GDP ratio will reach a record high of 108% in 2030, before climbing to 120% in 2036.
The federal budget deficit, projected to be $1.78 trillion in fiscal year 2025, is expected to rise to $1.85 trillion this year, according to CBO's The Budget and Economic Outlook report.
The report said the budget deficit is estimated to reach $1.89 trillion next year, and projected to rise to $3.12 trillion in 2036.
It pointed out that the budget deficit is high by historical standards, noting that the deficit as a percentage of gross domestic product (GDP) will be 5.8% in 2026 and 6.7% in 2036.
The report emphasized that large budget deficits in the next 10 years will lead to a steady increase in public debt, and projects that the public debt-to-GDP ratio will reach 101% this year and to 108% in 2030.
It also noted that the ratio of public debt to GDP is expected to reach 120% in 2036, significantly higher than the previous record of 106% recorded immediately after World War II in 1946.
The office added that economic growth, projected at 1.9% last year, is estimated to rise to 2.2% in 2026 and is expected to be 1.8% in 2027.