Business Science Stories

US national debt will exceed the size of the economy

The US national debt may exceed the size of the economy next year, for the first time since world war II. This is reported by the Wall Street Journal with reference to the report of the congressional Budget office.

According to the Agency’s estimates, the national debt will be equal to 100 percent of the annual GDP (or more) already in the new fiscal year, which begins in October. The reason for this is the large budget expenditures on programs to support the economy in the context of the crisis caused by the coronavirus pandemic. In 2023, the debt can reach 107 percent of GDP, the congressional office warns.

This year, the organization estimates that it will amount to 98 percent of GDP, which will also be the highest since the Second world war. The Federal budget deficit is projected to be $ 3.3 trillion this year (three times more than in 2019).

In June, the US national debt reached $ 26 trillion and set an absolute record. In March of this year, the us authorities decided to allocate two trillion dollars to support the country’s economy. in may, the government sent another three trillion dollars for this purpose.