WASHINGTON (Reuters) – The U.S. federal debt burden will reach 185% of economic output in 2052, the Congressional Budget Office projected on Wednesday, an improvement over last year’s long-term estimate but a projection driven by exponentially higher interest costs.
The CBO in 2021 had projected federal debt in 2051 at 202% of U.S. GDP output, with this year’s improvement due to a strong recovery from the COVID-19 pandemic. The estimates assume current tax and spending laws remain in place over the next 30 years.
The CBO estimated U.S. net interest outlays as a percentage of GDP to rise to 7.2% in 2052 versus 1.6% this year.
(Reporting by David Lawder; Editing by Chris Reese)
