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4w ago

CBO Warns of Rising U.S. Debt and Slowing Growth Over Next 30 Years

The latest report projects public debt reaching 156% of GDP by 2055, with deficits and interest costs growing as economic output slows and population growth stagnates.

The U.S. Capitol building is seen in Washington, U.S., December 18, 2023. REUTERS/Elizabeth Frantz/File Photo
FILE - Treasury Secretary Scott Bessent speaks with reporters at the White House, March 13, 2025, in Washington. (AP Photo/Evan Vucci, File)
FILE - Scott Bessent, United States Secretary of the Treasury, speaks at an Economic Club of New York luncheon in New York, March 6, 2025. (AP Photo/Seth Wenig, File)
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Overview

  • The U.S. Congressional Budget Office (CBO) projects public debt to rise to 156% of GDP by 2055, driven by rising interest costs and mandatory spending.
  • Federal deficits are forecasted to increase from 6.2% of GDP in 2025 to 7.3% by 2055, with interest payments surpassing discretionary spending by mid-century.
  • Economic growth is expected to slow from 2.1% in 2025 to 1.4% in 2055, exacerbated by weak population growth and a shrinking labor force.
  • Without immigration, the U.S. population is projected to begin shrinking by 2033, further straining economic output and fiscal stability.
  • The U.S. is on track to hit its statutory debt ceiling as early as July or August 2025, adding urgency to ongoing political debates over tax policies and spending cuts.