U.S. deficit will soar in the next decade, new CBO projections show

The U.S. deficit is expected to climb over the next 10 years with higher interest payments set to account for a historic share of government spending, the Congressional Budget Office said on Wednesday.

Why it matters: New projections from the nonpartisan agency show deficits jumping from $1.6 trillion this year to $2.6 trillion in 2034, alongside a slightly less gloomy prediction for the nation's fiscal health than previously estimated.

By the numbers: The deficit will be 5.6% of GDP this year before jumping to 6.1% in 2025, and ultimately holding at that level in 2034.

In its outlook, the CBO notes that deficits have exceeded this share of GDP only in periods of economic crises, not as the U.S. economy has boomed.