The United States national debt has surpassed the country's gross domestic product (GDP) for the first time since World War II, Fox Business reported, citing data from the Bureau of Economic Analysis.

As of March 31, the national debt stood at $31.27 trillion, while nominal GDP over the past 12 months is estimated at $31.22 trillion. This means the debt-to-GDP ratio has exceeded 100%.

According to the data, the US is approaching its historical record debt-to-GDP ratio of 106% recorded in 1946. The Congressional Budget Office (CBO) projects that this ratio could reach 108% by 2030 and rise to 120% over the following decade.

The CBO noted that the national debt is expected to grow faster than the economy, which could slow economic growth, reduce investment levels, and increase debt servicing costs.

Maya MacGuineas, president of the Committee for a Responsible Federal Budget (CRFB), stated that the current debt growth is not linked to a large-scale global conflict like after World War II, but rather to politicians' refusal to make difficult decisions.

She warned that further debt growth could lead to higher interest rates, increased inflationary pressure, and even trigger a financial crisis. MacGuineas called on authorities to reduce the budget deficit by approximately $10 trillion and bring it to around 3% of GDP to stabilize the situation.

Source: kun.uz