US predicts increase in public debt to 200% of GDP by 2050

The US national debt, if current rates of income and spending are maintained, will grow faster than the country’s economy, and by 2050 will reach 200% of national GDP, reads the forecast of the US Government Accountability Office, Report informs.

“The federal government faces an unsustainable long-term fiscal path that poses serious economic, security, and social challenges if not addressed. Our review of the nation's fiscal health found that the debt is projected to grow faster than the economy, reaching 200% of GDP by 2050 if revenue and spending policies are unchanged,” reads the report.

Government interest spending as a share of GDP will reach an all-time high by 2030, in part due to rising interest rates.

“Congress and the administration will need to make difficult budgetary and policy decisions to address the key drivers of federal debt and change the government's fiscal path. The sooner actions are taken to change the long-term fiscal path, the less drastic they will need to be.”

At the end of fiscal year 2023, the $26.2 trillion in debt held by the public was about 97 percent of gross domestic product (GDP). GAO projects that under current revenue and spending policies, debt held by the public will reach its historical high of 106 percent of GDP by 2028, and grow more than twice as fast as the economy over a 30-year period, reaching 200 percent of GDP by 2050.