U.S. National Debt Is Likely to Reach a Record 202% of GDP by 2051, CBO Projects
March 04 2021 - 2:29PM
Dow Jones News
By John McCormick
The federal debt is projected to rise to a record 202% of gross
domestic product by 2051, the Congressional Budget Office said
Thursday, reflecting rising costs of healthcare and debt
service.
The U.S. economy is projected to grow 1.8% a year during the
next three decades, compared with an estimated 1.6% in its
September report, the nonpartisan CBO said. Faster projected growth
reflects a smaller-than-anticipated impact of the coronavirus
pandemic, it said. Growth averaged 3.1% a year from 1951 through
2020.
The forecasts don't take into account the $1.9 trillion in
federal spending proposed by President Biden and backed by the
Democrats who narrowly control the House and Senate. Democrats say
the measure is needed to ease pain from the business closures and
job losses caused by the pandemic and related restrictions on
economic activity.
Congressional Republicans, meanwhile, object to the size of the
stimulus package and have pointed to growing budget deficits and
debt as a reason to keep spending in check as they argue the
economy is already poised for stronger growth.
(END) Dow Jones Newswires
March 04, 2021 14:14 ET (19:14 GMT)
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