US May Witness Largest Fiscal Deficit Since World War II

A report issued by the Congressional Budget Office predicts that the US federal government budget deficit will reach 16% of GDP during 2020, the largest in the United States since the end of World War II in 1945.

The bureau said the US public debt rate will exceed 100% of the US gross domestic product over the next year.

On the other hand, the public debt rate during 2019 was no more than 79% of GDP, and only 35% in 2007, the last year before the severe financial crisis that struck the United States in 2008.

The Budget Office expects the federal government’s fiscal deficit this year to reach $ 3.3 trillion due to the economic slowdown and closure measures caused by the Coronavirus pandemic, along with increased public spending to help those affected by the pandemic.

The office expects public debt to reach 109% of GDP in 2030.