The US Congressional Budget Office is out with its latest budget deficit numbers. Note that these are based on current laws and that would mean the expiration of the Trump tax cuts (from 2017) at the end of this year. Those are almost-certainly going to be extended so you can assume these numbers will be worse barring lower spending or higher taxes elsewhere.
- FY 2025 deficit seen at 6.2% of GDP and rising to 7.5% in 2055
- Debt to GDP to rise to 156% of GDP by 2055 from 100% now
- Worseing forecast linked to lower immigration and slowing potential growth
- Sees 2.1% GDP growth in 2025
- Interest costs expected to exceed defense spending this year
This article was written by Adam Button at www.forexlive.com.