“Report”: Interest in US economy gradually increases its public debt - ANALYSIS

Baku. 20 February. REPORT.AZ/ US public debt has risen by $2 trillion to reach $22 trillion since Donald Trump became the US President.

Report’s analytical group says that along with this, the US budget deficit is also increasing.

This figure was $779 billion in 2018, making 3.8% of the country's GDP. This figure (record high since 1950) is 0.3 percentage point higher compared to 2017.

US public debts mainly increase due to the treasury bonds. Investors from different countries invest in these 2- and 10-year instruments and gradually increase their investments.

For the present, most of investments in the bonds were made by Japanese investors ($1,137,000,000,000), China ($1,116,000,000,000), Ireland ($271 billion), Cayman Islands ($262 billion), Brazilia ($255 billion), Switzerland ($235 billion), Luxemburg ($216 billion), Great Britain ($207 billion), Taiwan ($189 billion), Hong Kong ($186 billion), India ($123 billion), Belgium ($117 billion), Singapore ($99 billion), Saudi Arabia ($97 billion) and Germany ($94 billion)

It’s no secret that securities market participants show great interest in US economy. The reasons are simple. On the one hand, the US ratings are too high. For instance, Standard & Poor’s affirmed US at ‘AA+’. Moreover, FED is gradually increasing the interest rates. And this anyway strengthens dollar’s position around the world and makes investors turn to US capital market.

By investing in the US economy, the owners of large amount of money get revenues as interests from their securities gradually go up. That’s why the US public debt will keep on rising and likely settle at $23 trillion at the end of this year. 

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