U.S. debt surpasses size of economy, reaching 100% of GDP
The United States’ national debt has exceeded the size of its economy, crossing a key symbolic threshold that economists and fiscal watchdogs have long warned about, Qazinform News Agency correspondent reports.
New data released by the Bureau of Economic Analysis shows that as of March 31, debt held by the public stood at $31.27 trillion, while nominal GDP for the preceding 12 months was estimated at $31.22 trillion. This puts the debt-to-GDP ratio at 100.2%, up from 99.5% at the end of the previous fiscal year in September.
The milestone means U.S. government debt is now larger than the country’s entire economic output.
We’ve heard plenty of alarm bells in the past few years about our fiscal path, but this one rings especially loudly. The real question is whether or not our leaders in Washington will listen, said Maya MacGuineas, president of the Committee for a Responsible Federal Budget.
She warned that, without changes, the debt burden could soon surpass the historic peak of 106% of GDP recorded in the aftermath of World War II.
Higher debt may slow income growth, push up interest rates, and increase inflationary pressures. It could also lead to higher borrowing costs for the government, placing additional strain on the federal budget and limiting room for future spending.
Earlier, Qazinform News Agency reported that Trump considered cutting U.S. troops across Europe.