According to observers, by the end of this fiscal year, the US national debt will exceed GDP.
The deep economic downturn and large-scale anti-crisis measures in connection with the coronavirus epidemic will lead to an increase in the budget deficit in the United States almost four times in the 2020 fiscal year. It could be $ 3.8 trillion, or a staggering 18.7 percent of GDP.
This is the conclusion of the Washington monitoring organization.
Based on the spending required by law, the Committee for a Responsible Federal budget also forecasts that the budget deficit will be $ 2.1 trillion in the fiscal year 2021. The average deficit in 2022-2025 will be at $ 1.3 trillion, as the economy recovers from restrictions imposed due to the coronavirus.
The Committee, which includes former us lawmakers, government officials and economists who advocate reducing the deficit, claims that by the end of the current fiscal year, on September 30, the US public debt will exceed the country’s GDP, while before the coronavirus crisis, it was just under 80 percent of GDP.