The CBO's debt could reach 152% of GDP in 2048

USA



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Debt is currently the highest since the end of the Second World War, at 78 percent of GDP, according to the report's summary. The report warns that – at this rate with the current policies in place – the debt could reach up to 152% of GDP by 2048.

"The prospect of a large and growing debt poses significant risks to the nation and presents policymakers with significant challenges," Keith Hall, director of the OCB, said in a statement on the budget outlook.

The report also notes that a significant portion of the population is aging and that spending costs for programs such as social security and health insurance are increasing.

"The projected deficits will increase over the next three decades as spending growth – particularly for social security, major health care programs and interest on public debt is expected to outpace income growth", said Mr. Hall.

"By 2048, as interest rates rise and debt accumulates, the federal government's net interest costs are expected to more than double as a percentage of GDP, and to reach new levels." record levels. currently the largest federal program, by 2048, "he continued.

The projections come several months after the GOP passed a massive tax bill, which, the report adds, has "significant direct effects on CBO's fiscal projections."

Clarification: This story and title have been updated to better describe what would make the 2048 projection historic.

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