The Congressional Budget Office predicts a surge in the U.S. deficit and debt.
The Congressional Budget Office predicts that by fiscal year 2036, the U.S. budget deficit will reach $3.115 trillion (6.7% of GDP), with an average annual deficit of 6.1% of GDP from fiscal year 2027 to 2036. The projected deficit for fiscal year 2026 is $1.853 trillion, which, compared to fiscal year 2025, represents 5.8% of GDP.
Key drivers include the 2025 Republican tax cuts ($4.7 trillion over 10 years) and reduced immigration ($0.5 trillion), partially offset by tariffs ($3 trillion). The cumulative deficit from fiscal year 2027 to 2036 could reach $24.4 trillion.
Economic growth is projected at 2.2% in 2026, with an average growth rate of 1.8% by 2036. Public debt could reach 120% of GDP by fiscal year 2036, exceeding the post-World War II peak of 106% in fiscal year 2030.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
