Federal debt held by the public to exceed GDP by next year: CBO
The coronavirus pandemic and federal efforts to provide relief will significantly add to the federal debt in the years ahead, the Congressional Budget Office projected Monday.
By the end of 2020, the federal debt held by the public is projected to be equal to 98% of gross domestic product, up from 79% in 2019.
As deficits continue to rise next year, the debt is expected to reach 104% of GDP in 2021. That figure rises to 107% in 2023, which would be the highest percentage in the nation’s history. The previous high was 106% of GDP in 1945, just after the end of World War II.
The CBO projects that the debt as a percentage of GDP will be 45 percentage points higher in 2049 than the 144% the agency projected last year.