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9/21, 8:47 PM (Source: TeleTrader)
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US public debt at 98% of GDP in 2020 - CBO

The United States Congressional Budget Office stated in its yearly report published on Monday that the country's public debt is estimated to amount to 98% of GDP at the end of the year. As the budget deficit increases, the public debt will rise to 104% of GDP in 2021, so that by the end of 2050 it equals 195% of the country's GDP.

When it comes to spending, the CBO noted that the coronavirus pandemic had pushed debt and interest rates into growth, while social security and health expenses would also go up. However, revenues are also expected to rise after the US economy recovers from the ongoing crisis, although not following spending at the same pace.

"High and rising federal debt makes the economy more vulnerable to rising interest rates and, depending on how that debt is financed, rising inflation. The growing debt burden also raises borrowing costs, slowing the growth of the economy and national income, and it increases the risk of a fiscal crisis or a gradual decline in the value of Treasury securities," the report explained.

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