Dhaka, May 03 (V7N) — For the first time in its history, the United States’ national debt has exceeded 100 percent of its gross domestic product (GDP), sparking concerns among economists about potential long-term risks to the country’s financial stability.

According to recent data, the US national debt has reached approximately $31.27 trillion, slightly surpassing its GDP of about $31.22 trillion. This puts the debt-to-GDP ratio at 100.2 percent, up from 99.5 percent in the previous fiscal year.

Experts say this is the first time since World War II that the country’s debt has exceeded the size of its economy, describing the development as a warning sign of mounting financial pressure.

The rising debt is largely attributed to persistent budget deficits and increased government spending. Currently, the United States is running an annual deficit equivalent to around 6 percent of GDP. Data from the Bureau of Economic Analysis indicates that the government is spending about $1.33 for every $1 it earns. The budget deficit for this year alone is estimated at $1.9 trillion.

Analysts warn that if this trend continues, the country could surpass its historical peak debt level of 106 percent of GDP recorded during World War II.

Projections from the Congressional Budget Office suggest that the US debt-to-GDP ratio could rise to 108 percent by 2030 and reach as high as 120 percent within the next decade.

Economists caution that such a trajectory may lead to slower economic growth, reduced investment, increased pressure on interest rates, and higher inflation, ultimately impacting ordinary citizens.

They stress that without timely policy measures to control spending and deficits, the United States could face significant economic challenges in the coming years.

END/SMA/AJ