WASHINGTON (Reuters) – The U.S. federal debt burden will double over the next 30 years, reaching 202% of economic output in 2051, as deficits grow and interest rates eventually rise, the Congressional Budget Office said on Thursday in its latest long-term budget projections.
The CBO projected that federal debt will reach 102% of gross domestic product in 2021 due to massive spending associated with the coronavirus pandemic. This spending is expected to fade over the next decade, shrinking annual deficits to an average of 4.4% of GDP in the 2022-2031 period, from 10.3% in 2021.
But deficits then grow to average 7.9% of GDP in the 2032-2041 period and 11.5% of GDP in the 2042-2051 period, the CBO said in its projections, which it noted are based on currently enacted laws.
(Reporting by David Lawder; Editing by Paul Simao)
