(MENAFN) The Congressional Budget Office (CBO) has issued a sobering warning, predicting that the United States' public debt held by the public is on track to hit an unprecedented 116 percent of GDP by 2034, a level not seen since World War II. The CBO's latest Budget and Economic Outlook, released on Wednesday, outlines the trajectory of United States debt, revealing that it stood at USD26.2 trillion, accounting for 97 percent of GDP at the end of the 2023 fiscal year.

According to the projections, the public debt is anticipated to escalate further, reaching 99 percent of GDP this year and surpassing the country's annual economic output by 2025 at 101.7 percent. By 2028, the public debt is set to exceed the World War II record high of 106 percent of GDP, reaching an alarming USD48.3 trillion by 2034, equivalent to an unprecedented 116 percent of economic output.

The primary driver behind this surge in public debt, as outlined by the CBO, is the growing budget deficits. The federal budget deficit for 2024 is projected to rise to USD1.5 trillion, equivalent to 5.3 percent of GDP, with further increases anticipated over the next decade. The cumulative deficit is expected to reach USD20.0 trillion from 2025 to 2034, pushing debt levels to a staggering 172 percent of GDP by 2054.

The article explores the implications of this trajectory, shedding light on the factors contributing to the burgeoning budget deficits, the potential economic repercussions, and the challenges the United States government faces in managing and curbing the escalating public debt. Additionally, it delves into the historical context of the debt-to-GDP ratio, drawing comparisons to the World War II era and highlighting the unprecedented nature of the projected figures.

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