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U.S. Congressional Budget Office Forecasts $2.6 Trillion Budget Deficit by 2034

The Congressional Budget Office (CBO) anticipates that the United States federal government’s budget deficit will reach $2.6 trillion by 2034, according to the “Budget and Economic Outlook: 2024-2034” report released in Washington.

The report highlights that the federal government’s budget deficit, which was $1.7 trillion in the 2023 fiscal year, is expected to decrease to $1.6 trillion this year. However, the deficit is projected to increase to $1.8 trillion in the following year, and by 2034, it is estimated to reach $2.6 trillion.

The report also indicates that the public debt-to-gross domestic product (GDP) ratio, which was 97.3% last year, is anticipated to rise to 99% this year and reach a historic high of 116% by 2034.

The forecast suggests that economic growth will slow down in 2024, partly due to a consequence of a tight monetary policy leading to increased unemployment. The growth rate of the U.S. economy, which was 3.1% last year, is expected to be 1.5% this year and 2.2% next year, according to the report.

source: aa.com.tr / prepared by Melisa Beğiç

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